Reject government's proposed Debt Exchange Programme - IBF to bondholders

Members of the Individual Bondholders Forum (IBF) have called on direct bondholders to reject and refrain from complying with the mandatory deadline imposed under government’s intended Domestic Debt Exchange Programme.

The group joins a host of others seeking to reject and file class action suits against government regarding the debt exchange programme as part of the debt restructuring exercise mooted by the IMF bailout.

A statement issued and signed by Convener of the Forum, Senyo Hosi, further wants indirect bondholders to inform their respective fund managers not to accept the proposed DDE programme.

“In an unfortunate oppressive fashion, government has shown total disregard for the contractual rights of Individual bondholders and has made no effort to structure reasonable consultations with individual bondholders,” portions of the statement read.

“In the process, we (IBF) have been presented with painfully stark, impoverishing and unsustainable choices – a situation deeply troubling and wholly untenable. This is only possible because of the absence of effective representation and the perceived ease of oppressing a dispersed section of investors into submission,” it added.

The IBF added that the arrangement under the DDE programme irreversibly takes away the wealth and livelihoods of direct and indirect individual bondholders whose only crime, they say, has been to place trust in government with their investments.

“The medium-to-long-term prospect and outlook of the domestic investment culture in Ghana is going to be affected by this DDE initiative and we call on government to demonstrate the needed sensitivity to enable a constructive resolution in the best interest of all," the statement stressed.

The IBF however urged labour unions to join in efforts aimed at rejecting the debt exchange programme toward the preservation of hard-earned savings invested by the Ghanaian public.

MA/FNOQ