Convener of the Individual Bondholders Forum, Senyo Hosi, has stated that holding on to old bonds is safer than signing up for new bonds.

He explained that with the current bonds, holders are assured of the initial rate at which they purchased the bonds.

He said, “with bonds right now your investment is retained because that’s your expectation. You went in for 16%, you’re getting your 16%, no problem. Secondly, if you take an ESLA or you take a Daakye bond, the source of the revenue is secured.

“The ESLA is even governed by British law, English law; it’s not even governed by Ghana law. Anytime you buy petrol, the money to pay your ESLA flows in. You’re already taxed to pay off the bond,” he is quoted by myjoyonline.

Senyo further explained that under the debt exchange programme, the government is granted immunity therefore will not be required to pay reparations, unlike the current bonds where holders can sue.
So while you can sue government, it will merely be considered an academic exercise as no reparations will be received.

“Then you have in these current bonds GoG, Government of Ghana has no immunity. So, your rights are fully enforceable. If the government refuses to pay, you can sue them, and suing them is not just enough because it can also be an academic exercise. What’s most important is its enforceability where you can actually now attach an asset. You can execute your judgement.

“Under your current bond framework, you can do that, under the new one you can’t do that. You can sue them but they’re making you waive your right and granting them immunity against you attaching any asset of government that is for a public purpose. Tell me which asset of government is not for a public purpose. Which asset of government is for private purposes? Then you’re a thief,” he said.

He also added that bondholders being asked to waive their rights automatically renders their new bonds worthless.

“So, you could lose up to 70% of your investment and it could be more if you really look at the real value of your money,” he said.



SSD/FNOQ