Don't be misinformed about claims DDEP will make old bonds worthless – Senyo Hosi

Convener of the Individual bondholders’ forum, Senyo Hosi, has stated that refusal to sign on to the government’s debt exchange programme will not make old bonds worthless as has been perpetuated by the government.

According to him, claims that the economy will crash if bondholders do not accept the programme is not true, based on data available from the Finance ministry.

Senyo said those who have raised those issues are only fear mongers while explaining that it is rather the new bonds that are potentially worthless.

“Please anybody who tells you [that] is a liar, is uneducated, has no skills, is not worth any attention if you’re an individual bondholder. 1+1 can’t be 3. It can’t be one and a half. It’s not Senyo, this one is just math, it’s science, it’s finance, it’s economics and again it’s common sense,” he was quoted by myjoyonline.com.

His comments come after reports that Ghana’s economy will crash if bondholders refuse to sign up for the debt exchange programme.

“Ghana is in a very difficult place. What we are seeing with the mobilisation of agitation on individual bondholders poses a real and serious risk worse than what we witnessed when opposition to E-Levy succeeded in derailing an already shaky macroeconomic situation from 2021,” his tweet on January 16, 2023, read.

“If the no-compromise opposition to it wins, what then has been achieved? It may lead to national debt default. So, what then happens to the value of your bonds after! Potentially worthless. If participation is low, we jeopardize resolving the economic crisis and hardships,” he added.

Meanwhile, the government has extended the deadline for bondholders to sign up for the programme to January 31, 2023, for a broader consensus to be built.

SSD/FNOQ