Individual Bondholders Leader Satisfied With DDEP Revision
The Ghana Individual Bondholders Forum convener, Senyo Hosi has expressed satisfaction with modifications in the Domestic Debt Exchange Programme (DDEP) offer.
According to him, the current state of the offer is a “massive improvement from what was originally on the table”.
The Forum earlier estimated 88.2% and 71% losses at current T-bill and inflation rates respectively if the DDE is taken up.
“Our coupons face absolute haircuts and when we discount your proposed benchmark bonds at the coupon rates of the original bonds, we are effectively losing 50% of our investments. When discounted at current T-bill rates, we are losing 71% of our investments, and at prevailing inflation, we face an 88.2% loss”.
It added, “With your set target of 80% of eligible bonds, Individual Bondholders are not a critical success factor to the viability of the DDE programme as you envisage, yet the impact of their inclusion has incalculable consequences. Please exclude us and save 1.3 million livelihoods and dependents from shackled penury”, it added.
It emphasised that the DDE proposed for Individual Bondholders takes away their liberty to “self-sustain, mocks hard work, and robs us of legally acquired property”, which doesn’t reflect the “tenets of good governance”.
The forum, therefore, advocated for total opposition by members.
On January 31, 2023, the Ministry of Finance revised the offer to be voluntary.
It further said all individual bondholders below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 10% coupon rate.
Also, all retirees- including those retiring in 2023- will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate.
Reacting to the revision, Senyo Hosi said the current state of the offer is much better.
In an interview monitored by opemsuo.com, he said bondholders may lose about 29% as against the 50% while 15% will be lost on the pension fund at the current offer.
He said the Forum will be educated on the development.
“It’s an offer on the table we will educate our members on. We will encourage those who find it useful to take and ask those who find it otherwise to avoid it.”
Meanwhile, the government has encouraged stakeholders to patronise the offer.
“Government encourages all stakeholders to participate in the DDEP, an essential step towards meeting our debt sustainability targets and restoring macroeconomic stability and economic growth.”
Source: opemsuo.com/Hajara Fuseini