Domestic Debt Exchange: Health Services Workers union cautions govt

General Secretary of the Health Service Workers Union, Franklin Owusu Ansah, has warned the government of Ghana against tampering with their pensions.

This warning was rehashed on Happy98.9FM’s ‘Epa Hoa Daben’ political talk show.

The Government on Sunday announced a slash in interest payments for domestic bondholders to zero percent in 2023 and pegged 2024 interest payments at 5 percent.

According to the government, there will be no haircut on the principal of bonds, adding that individuals with government bonds will have their full investments upon maturity.

In a public address on Sunday, December 4, on the current economic situation, the Finance Minister, Ken Ofori-Atta said the government will ensure that people’s investments are safe.

He further announced that interest payments for domestic bondholders for 2024, will be pegged at only 5% adding that from 2025, the rate increases to 10%.

In an interview with Don Kwabena Prah, Franklin Owusu Ansah said, “the NPRA told us it is safe to keep and invest our monies with the government but with this new policy, there is going to be a total wipe out of our interest in 2023. The interest we will also earn in the subsequent years is nowhere near the 19.5 percent and 20 percent interest we are entitled to.”

He reiterated the position of members of the union has not changed. “We say do not touch our pensions.”

The union has over 90 percent of its members’ pensions invested in government bonds. The union is displeased government refused to consult them over such a move which seems to affect them the most.

“We have our money with you but you don’t consult us and decide to use our monies for debt restructuring. You decide to keep our monies at no profit to us and for that, we say the government should not use our money for any such thing,” he stated.