Exclude individual bondholders from debt exchange programme – IBF petitions government

The Individual Bondholders’ Forum (IBF) have petitioned the Ministry of Finance and the President to exclude individual bondholders from the intended Debt Exchange Programme which will take place from January 16, 2023.

The group which is a representative body for individual investors in the country have described the commencement of the debt restructuring initiative as one that takes away the liberty of investors’ funds and subsequently robs them legally of their acquired property.

A statement issued and signed by the Convener of the group Senyo Hosi, noted that the DDE programme does not reflect the tenets of good governance on the part of the Akufo-Addo-led administration.

“The inclusion of Individual Bondholders in the proposed domestic debt exchange (“DDE”) programme announced on the 24th of December 2022 has been extremely unsettling and catastrophic for our membership and all others affected," it noted.

“We (IBF) hereby humbly petition your office to reconsider your position in the DDE information memoranda of 24th December 2022 and as a matter of urgency grant the following:

1. The exclusion of Individual Bondholders from the DDE.

2. The exclusion of individual investors’ holdings in Collective Investment Schemes affected by the DDE.

3. The exclusion of individual investors’ holdings in the ESLA Bonds in the DDE.

4. The exclusion of individual investors’ holdings in the Daakye Bonds in the DDE.

5. The commencement of discussions and/or negotiations with our membership to discuss the above.

The IBF further noted that since the commencement of considerations and discussions on government’s debt restructuring in the second half of 2022, Individual Bondholders have not been engaged in the process.

“This is at variance with the contractual principles of good faith, fairness and best practices,” the statement stressed.

“The social impact of the DDE as currently presented for individuals is the harshest on any investor category and catastrophic to the livelihoods of the about 1.3 million direct and indirect bondholders and their dependents. Unlike other investor categories likely to benefit from the Financial Stability Fund, Individual Bondholders have no support to fall back on,” it added.

See the full statement below:



MA/FNOQ