Convener for the Pensioner Bondholders Forum, Dr. Adu Anane Antwi, has emphasized that they should not be considered for inclusion in the new Domestic Debt Exchange Programme (DDEP) since government had previously granted them an exemption from the exercise.
He pointed out that their inclusion in the new DDEP is a mistake, and he further stated that the government can only make such a decision after revoking the exemption that had been provided to pensioner bondholders.
Speaking on JoyNews’ PM Express, Dr Adu Anane said that “we sent a letter to the minister this [Monday] morning pointing out that we see some irregularities in the invitation and that they could not extend that invitation to cover us. So, we think there’s an error and they should correct it. If you have been exempted, nobody can invite you to come and participate in any reopening unless the exemptions have been cancelled.”
“So, if they want to invite as they must first cancel the exemption, then you know you are now not under an exemption. If the ministry wants to do that, then this is the way they should proceed. But I believe it is an error. They never thought, they didn’t apply their minds to the fact that you could not extend an invitation to an exempted group.”
Dr. Adu Anane clarified that pensioner bondholders, categorized as group B, and who held eligible bonds exempted from the program, were never included in the group that received invitations and were unable to participate in the DDEP for specific reasons.
He asserted that if the inclusion of pensioners was not a mistake, it might be construed as a deliberate effort to entice individuals to join the program.
“But I don’t think the government will do that deliberate attempt. I believe it’s an error and they will own up to that and say, well, unfortunately, we shouldn’t have to input your name there,” he added.
This development follows the government’s announcement of the re-launch of the DDEP, with a specific focus on investors who did not enroll in February.
In a statement, the Finance Ministry highlighted that this opportunity would extend to holders of both E.S.L.A. Plc and Daakye Trust bonds. Additionally, the Ministry acknowledged the existence of a significant number of bondholders who missed the earlier offer deadline and were consequently excluded.
“We believe that there is value for bondholders to participate in this Invitation. Indeed, the New Bonds (which will include the New Tranches) are expected to be more liquid than the Eligible Bonds, considering the larger investment base and the benchmark size of the New Bonds”, the statement said.
The government started a DDEP program last year as part of steps to assure debt sustainability and restore macroeconomic stability under the $3 billion three-year Extended Credit Facility Programme with the International Monetary Fund (IMF).