The Chamber of Corporate Trustees has joined calls against the government’s proposed debt exchange programme.
Registering their displeasure in a statement, the chamber said the proposal falls short of market expectations, will obliterate Ghanaians’ savings, and further erode the market trust.
“We have carefully analysed the announcement by the Minister of Finance on the Debt Exchange Programme and are of the opinion that it is injurious to the interest of contributors to pension schemes.
“The proposal as put forth by the Minister of Finance is inferior to market expectation and will destroy the savings of Ghanaians and further undermine market confidence. This is why we reject it outright”, the chamber explained.
Finance Minister, Ken Ofori-Atta, on Sunday, December 4, 2022, announced Ghana’s Domestic Debt Exchange Programme which he said was aimed at restoring the nation’s capacity to service its debt.
The programme was subsequently launched on Monday, December 5, 2022.
Although the Minister explained that the government is confident that “these measures will contribute to restoring macroeconomic stability,” the decision has been highly contested.
Scores of Ghanaians have reacted to the proposal.
Reacting to the comments, a Banking Consultant, Dr. Richmond Atuahene, noted that the programme could plunge the country into difficult times.
He propounded that rather than only implementing the debt exchange programme, the government could have also employed the debt rescheduling programme and debt re-profiling programme to ensure our debts reach sustainable levels.
Also, the Ghana Registered Nurses and Midwives Association (GRNMA) has also registered its displeasure.
In a statement the group said “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.”
Subsequently, the pensions chamber has urged calm amongst Ghanains as it has assured contributors to pension schemes that the industry has not agreed to the debt exchange programme proposed by the Ministry of Finance.
“As Trustees, we hold a fiduciary responsibility and are enjoined to seek the best interest of contributors at all times”, it stressed.
It acknowledged that inflation has caused significant harm to pension fund assets this year and that there is an urgent need to reduce the government debt burden and restore macroeconomic stability that should, however, this should not be done at the expense of contributors to pension schemes.
“We share in the Government’s call for burden sharing, but that should be done in the spirit of fairness to ensure a win-win outcome to all stakeholders”, the chamber added.
It also said it is engaging the government to seek the best outcome after negotiations with the Ministry of Finance.
“We will duly inform members of the outcome of our deliberations”, it concluded.
Source: The Independent Ghana