Individual bondholders run to Togbe Afede over DDEP

  Thu, 26 Jan 2023
Business & Finance Individual bondholders run to Togbe Afede over DDEP

The Individual Bondholders Forum has petitioned Togbe Afede XIV, the Agbogbomefia of the Asogli State, to help them get an exemption from government's Domestic Debt Exchange Programme (DDEP).

The Individual Bondholders are insisting on the complete exclusion of its members from the Domestic Debt Exchange Programme, stating that their inclusion will destroy household confidence in Ghana's financial system and securities market.

Addressing the former President of the National House of Chiefs on Thursday, the Convener of the Individual Bondholders Forum, Senyo Hosi said: “Togbe the matter is an eye red matter and for someone who has led the capital market and being one of the players who birth the capital market, besides your royal place as the Agbogbomefia of the Asogli State, you are a pioneer in this industry, I do not want to believe this is your voice and the destination you assured us when your voice was heard back then.

“So we are here to petition your office, to petition you as an individual and the state of Asogli not to sit by and watch the lives of 6.5 million people devastated and subjected to shackles of penury. So our plea here is very simple, the steps being taken by the government are unsustainable and very unnecessary.”

Individual bondholders during discussions with the committee set up by the government to resolve issues on the debt exchange programme stated that with the set target of 80% of eligible bonds, Individual Bondholders are not a critical success factor to the viability of the DDE programme, yet the impact of their inclusion has incalculable consequences.

As part of recommendations to the Committee, the Individual Bondholders Forum led by Senyo Hosi recommended that the government divest loss-making, defunct and troubled 17 State–own

enterprises. The Individual bondholders also suggested that the government review the Free SHS Programme to make it more efficient through effective targeting and allowing parents who can pay to do so.

According to the group, “beneficiaries should be students that patronize Senior High Schools in their communities whilst other students should pay for boarding. However, the government can pay for students who do not have Senior Secondary schools in their communities.”

The group stated that divesting the 17 non-performing SOEs and reviewing the free SHS alone will provide the government with two billion cedis.

The group also urged the government to maintain the 2022 capital expenditure level by reducing the non–ABFA MDA and foreign finance Capex provisions by 50% which they claim will provide the 10.7 billion Ghana Cedis.

By Citi Newsroom