The Individual Bondholders’ Forum (IBF) has asked the President and the Ministry of Finance to exempt individual bondholders from the planned Debt Exchange Program, which will begin on January 16, 2023.
The group, which serves as an umbrella organization for private investors in the nation, claimed that the start of the debt restructuring project robs investors’ money of their freedom and then steals their property legally.
The DDE initiative does not reflect the principles of good governance on the side of the Akufo-Addo-led administration, according to a statement released and signed by the group’s convener Senyo Hosi.
“We (IBF) hereby humbly petition your office to reconsider your position in the DDE information memoranda of 24th December 2022 and as a matter of urgency grant the following:
1. The exclusion of Individual Bondholders from the DDE.
2. The exclusion of individual investors’ holdings in Collective Investment Schemes affected by the DDE.
3. The exclusion of individual investors’ holdings in the ESLA Bonds in the DDE.
4. The exclusion of individual investors’ holdings in the Daakye Bonds in the DDE.
5. The commencement of discussions and/or negotiations with our membership to discuss the above.
The IBF further noted that since the commencement of considerations and discussions on government’s debt restructuring in the second half of 2022, Individual Bondholders have not been engaged in the process.
“This is at variance with the contractual principles of good faith, fairness and best practices,” the statement stressed.
“The social impact of the DDE as currently presented for individuals is the harshest on any investor category and catastrophic to the livelihoods of the about 1.3 million direct and indirect bondholders and their dependents. Unlike other investor categories likely to benefit from the Financial Stability Fund, Individual Bondholders have no support to fall back on,” it added.