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HomeBusinessChamber of Pensions rejects Govt’s Debt Exchange Program

Chamber of Pensions rejects Govt’s Debt Exchange Program

The Chamber of Corporate Trustees has rejected government’s Debt Exchange Programme insisting it is injurious to the interests of contributors to pension schemes.

The Chamber contends that although there is the need to reduce government debt burden and restore macroeconomic stability that should not be done to the detriment of the contributors to pension schemes.

“The Pensions Chamber would like to assure contributors to pension schemes that the industry has not agreed to the Debt Exchange Program proposed by the Ministry of Finance,” the Chamber said in a statement on Monday.

The Statement thus encouraged contributors to pension schemes to seek further information from their pension providers/administrators as the Chamber engages further with government to improve the terms of the restructuring.

The government has announced modalities of a domestic debt exchange following the conclusion of Debt Sustainability Analysis as part of negotiations with the International Monetary Fund (IMF).

In line with the programme, domestic bondholders are billed to exchange their instruments for new ones, Finance Minister Ken Ofori-Atta said in a televised announcement on Sunday.

According to him, existing domestic bonds as of 1st December 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032, 2037.

Meanwhile, the Finance Minister stressed “There will be NO haircut on the principal of bonds, adding Individual holders of bonds will not be affected.

Also, Treasury Bills were exempted from the haircut as holders will be paid the full value of their investments on maturity.

 

Source: starrfm.com.gh

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