Don’t sign up to the debt exchange – Individual Bondholders’ Forum reminds investors

Ghana Individual Bondholders' Forum is still advising persons with collective investment schemes not to succumb to pressure and sign up for the Domestic Debt Exchange (DDE).

The advice comes less than 24 hours to the expiration of the deadline for the program.

It also comes after the group met with the Minister of Finance for a road map over the inclusion of individual bondholders in the programme arguing that it will destroy household confidence in Ghana's financial system and securities market.

Following discussions with the technical committee set up by the government to resolve issues surrounding the DDE, the individual bondholders added that with the set target of 80% of eligible bonds, Individual Bondholders are not a critical success factor to the viability of the programme, yet the impact of their inclusion has incalculable consequences.

It thus recommended fiscal adjustments including the divestiture of loss-making, defunct and troubled 17 State–own enterprises.

But in a latest statement, the group insists it has not received the MoF's revised proposal for consideration and evaluation.

Therefore, it is providing guidance to individual bondholders and collective investment scheme investors, and fund managers as follows:

1. If you intend to optimise your investments, maintain your superior original/old bonds. Hence, do not sign up to the DDE.

2. Do not harbour any form of fear of being punished for rejecting the DDE. The law is in your favour and the Minister of Finance has been categorical in affirming your right by stating that he will honour obligations under the old bonds and will not undertake any action to punish individuals who reject the DDE.

3. If you feel compelled to support the DDE programme for other reasons, please, do not hesitate to sign on to the DDE.

4. To support the turnaround of the economy, we encourage all not to lose confidence in Ghana's financial system. The continuous investments and savings of everyone is required to spur the growth of our economy.

5. We urge every citizen to file their taxes and honestly pay up all obligations due. We all owe it to Mother Ghana to make things work.

By Citi Newsroom