DDE: Finance Ministry continues discussions with Pension Fund Trustees amid deadline extension
The Finance Ministry continues with its discussions with Pension Fund Trustees and Organized Labour in hopes of coming to an agreement with the latter under the domestic debt exchange programme.
This, the Ministry noted, in a statement issued on Tuesday, January 31, 2023.
According to the Ministry, discussions are currently being finalised with Pension Fund Trustees on a separate arrangement/agreement from that accepted by the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and the Ghana Securities Industry Association (GSIA).
The separate arrangement for Pension Fund Trustees, the Ministry noted, is in accordance with the MoU signed by Organised Labour on December 22, 2022 and also in line with government ‘s debt management programme.
The Chamber of Corporate Trustees (Pensions Chamber) has always advocated for the exclusion of pension funds from the debt exchange programme.
In a letter dated December 15, 2022, the Chamber advised Trustees not sign onto the debt exchange programme in its current format but wait till there is a renegotiated terms for the pensions industry.
The debt programme in its current form is expected to collapse some 22 Corporate Trustees (pensions).
Meanwhile, individual bondholders have finally been excluded from the debt exchange programme.
In a statement issued by the Finance Ministry on Tuesday, January 31, 2023 – the extended deadline for participation of individual bondholders and financial institutions in the debt programme – the Finance Ministry noted that, the decision to exclude individual bondholders is premised on engagements with the leadership of the IBF.
Its decision is also in view of the acceptance of the debt programme by the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and the Ghana Securities Industry Association (GSIA).
According to the Ministry, it will, on Thursday February 2, 2023, publish a revised and final memorandum on the debt exchange programme to reflect the new agreements made with the GAB, GIA and GSIA as well as the exclusion of individual bondholders from the debt programme.
