The Chamber of Corporate Trustees of Ghana has authorized its members to participate in an alternative debt exchange program for pension schemes.
This decision follows an announcement by the Ministry of Finance regarding the restructuring of ¢31 billion pension funds in the next phase of its Domestic Debt Exchange Programme (DDEP).
The Ministry’s initiative will impact E.S.L.A. Plc and Daakye Trust Plc, including debt in the energy sector and cocoa bills.
The Chamber collaborated closely with Organised Labour to offer technical guidance, leading to an agreement allowing Pension Fund Schemes to engage in the exchange.
“Board of Trustees of pension funds should independently assess the alternative offer from the MoF and participate in the exchange as they deem fit,” the statement added.
The Chamber emphasized that pension fund Boards of Trustees should independently assess the Ministry’s alternative offer and decide their participation.
Furthermore, they suggested that emergency board meetings be convened to facilitate inclusive decision-making.
The Ministry’s statement explained that the invitation aims to help Pension Funds maintain their value while exchanging Eligible Bonds for Bonds with greater liquidity. Offers for exchanging Eligible Bonds are irrevocable, subject to specific circumstances.
The submission period for offers runs from the Launch Date until 4:00 p.m. (GMT) on August 18, 2023 (the Expiration Date).