Debt exchange programme injurious to pension contributions – Trustees Chamber

The Chamber of Trustees has voiced its rejection of the debt exchange programme announced by the finance minister on December 5, 2022.

According to the Chamber, the programme will be detrimental to the contributions of pensioners.

The finance minister extended an invitation to “holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”

But the Chamber in a press release on December 5, said, “We have carefully analyzed the announcement by the Minister of Finance on the Debt Exchange Programme and are of the opinion that it is injurious to the interest of contributors to pension schemes.”

“The proposal as put forth by the Minister of Finance is inferior to market expectation and will destroy the savings of Ghanaians and further undermine market confidence. This is why we reject it outright,” it explained.

The Chamber further urged its members to note that it has not accepted the programme by the government.

“As Trustees, we hold a fiduciary responsibility and are enjoined to seek the best interest of contributors at all times,” it stressed.

Ghana’s debt levels have reached unsustainable levels therefore the need to restructure in order to restore macroeconomic stability.
“We share in Government’s call for burden sharing, but that should be done in the spirit of fairness to ensure a win-win outcome for all stakeholders,” the chamber stressed.

The release further noted that its members should stay calm “as we seek the best outcome in our negotiations with the Ministry of Finance” and “will duly inform members of the outcome of our deliberations.”

SSD/FNOQ