Convener for the Individual Bondholders Forum, Senyo Hosi, says the Individual Bondholders will not want to make any mistakes with the Domestic Debt Exchange Program (DDEP) that will spell doom for them in the future.
According to him, individuals are better off not signing up for the new offer the government wants them to sign onto.
Government has given a three-day window for bondholders to complete tender processes as part of the controversial domestic debt exchange programme.
The deadline for signing up for the programme expired on Tuesday, February 7, 2023, but the government in a late-night press statement, said some of the bondholders faced “technical glitches as they tried to complete the online tender process,” hence the window to enable such persons to complete the process.
“As a result, government is providing bondholders with a window to complete processes for tendering their bonds, in response to the terms of Exchange as amended pursuant to the 2nd Amended and Restated Exchange Memorandum. This window ends on Friday, 10th February 2023 at 4:00 p.m. (GMT),” the Finance Ministry announced in a statement signed by sector minister, Ken Ofori-Atta.
Mr. Senyo Hosi, speaking on the Morning Starr with Francis Abban about the DDEP, welcomed the Finance Minister’s assurance that he will honor the old bonds.
“There are variations that clearly indicate that individuals are better off with the old bond than taking on the new bond. The challenge really has to do with legal structure when the government is taking immunity from the execution of judgment using assets that belong to the State. You can get judgment against the government but you can’t enforce it, you will surely be at the mercy of the government.
“In this highly polarized environment, you realize that the current offer for individuals will expire because the payment is due beyond the tenure of this government. The next government comes in and can give you a thousand and one excuses and keep rescheduling it and you can’t do anything about it,” Mr. Hosi stated.
He continued: “But with the old agreement they are obliged to honor because there are enforcing rights to the old agreement. Unlike institutions like banks that have the Central Bank to protect their interest, individuals have nothing. We will be subject to oppression of our own government.”