The Ghana Registered Nurses and Midwives Association (GRNMA) is protesting the proposed debt exchange programme as announced by the government.
According to the association, domestic debt exchange will not augur well for pension contributors.
Finance Minister, Ken Ofori-Atta, on December 4, 2022, announced the government’s domestic debt exchange programme as part of plans of restoring the country to fiscal stability.
These measures include some exemptions and external debt restructuring parameters that will be implemented.
Mr Ofori-Atta noted that the objective of this programme was “to invite holders of domestic debt to voluntarily exchange approximately ¢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.”
Latest to join the voices protesting this new measure is the Ghana Registered Nurses and Midwifery Association.
Justifying why this is not acceptable, the association explained that pension funds were a collection of contributions of individuals and by design they were meant to protect the vulnerable during retirement, thus, the government has no business touching it.
In a statement registering their displeasure, the Association said any treatment of “individuals” as stated by the Minister of Finance must be indeed extended to all individuals as with pension funds including their GRNMA Fund, a Provident Fund for over 101 ,000 contributors who were nurses and midwives within the nursing and midwifery fraternity.”
It further said Pension Funds, particularly tier 3 schemes were encouraged to hold their investments for a minimum of 10 years and from its inception in 2012, most schemes had just met the 10 years or would be 10 years next year.
“Debt exchange for pension funds will mean that workers will not have access to Tier 3 funds after waiting for 5 – 15 years. This is simply unacceptable,” the association stressed.
Per the statement, the National Pension Regulatory Authority’s (NPRA) regulations makes it clear that all Pension Schemes had most of their assets in Government of Ghana securities and trustees of these Pension Schemes were bound by regulation in the asset allocation policy by the NPRA.
The aggrieved members of the GRNMA further stated that it would therefore be unfair for the poor worker to suffer under the proposed new bond issuance as part of the debt exchange.
It thus charged the government to allow their Bonds to run until their maturity.
“It is unacceptable that a government that budgets 18 per cent inflation in 2023 will consider zero interest rate for pension funds of poor, hardworking, law abiding citizens within the same period,” it said.
The GRNMA is not the only association protesting this measure. The Chamber of Corporate Trustees has also rejected the Debt Exchange programme.
Expressing their grievances in a press release on Tuesday, the Chamber noted that the programme will not inure to the benefit of pensioners in the country.
“On 30th October, 2022, The President of Ghana Nana Addo Dankwa Akuffo Addo addressed the nation and assured all Ghanaians that “there would be no haircuts on pension funds”. A few weeks after this announcement, we are all witnessing, rather surprisingly, a major U-turn from that position.”
“We have carefully analyzed the announcement by the Minister of Finance on the Debt Exchange Program and are of the opinion that it is injurious to the interest of contributors to pension schemes,” portions of the statement read.
Source: The Independent Ghana