A group of pensioner Eurobond holders in Ghana has expressed deep disappointment and frustration, calling on the government to exempt them from the ongoing Eurobond debt restructuring process.
This plea follows recent remarks by the Finance Minister, who announced that Eurobond investors had forgiven $5 billion of Ghana’s debt.
The pensioners are dismayed by the lack of attention given to their group in the debt negotiations, which have largely focused on international and commercial bondholders. They argue that while these institutional investors may be better equipped to handle the restructuring terms, individual pensioners, who rely on their Eurobond investments for financial security in retirement, are severely impacted.
Under the current restructuring plan, Eurobond holders face a 37% haircut, reduced interest rates, and extended maturity dates of up to 10 years or more. The pensioners assert that such terms are unbearable for elderly citizens who depend on these returns for essential expenses, particularly medical bills.
“We, the affected pensioners, write to express our deep disappointment and frustration with this turn of events,” they stated. “At our age, and being on retirement, the 37% haircut, reduced interest rates, and longer tenor will affect us adversely, resulting in significant financial losses which we can hardly afford.”
The group has repeatedly attempted to engage the government, submitting letters to the Finance Ministry without receiving any response. Having endured two years of zero-interest payments, they emphasize that the ongoing financial strain is unbearable.
In response to the Finance Minister’s recent call for bondholders to accept the restructuring terms, the pensioners are pleading for exemption, citing their vulnerability. They have outlined key requests, including:
- Exemption from the Eurobond restructuring for pensioners and other vulnerable groups.
- Exploration of alternative solutions that safeguard their financial stability.
- Meaningful engagement with the government to address their specific concerns.
The pensioners stress that their numbers are small, and their request for exemption is reasonable given their limited financial resources. They are calling on the media and the public to support their appeal for a more equitable approach to the restructuring process.
Having exhausted other avenues, the group has turned to the media to highlight their plight in hopes of finally being heard by the government and achieving a fair resolution. They have provided contact persons for follow-up responses, which they expect from the government.