Debt Exchange to collapse 22 Corporate Trustees
Some twenty-two (22) Corporate Trustees are expected to fold-up should the Domestic Debt Exchange Programme (DDEP) be implemented as planned by government.
This is according to the Executive Secretary of Corporate Trustees, Thomas Kwesi Esso.
Making the assertion at the 9th Investiture Ceremony of the Governing Council of the Chartered Insurance Institute of Ghana (CIIG), Mr Esso quipped the Debt Exchange programme will greatly affect the operations of Corporate Trustees.
Mr Esso therefore called for the exclusion of Corporate Trustees from the DDEP.
A similar call for the exclusion of Corporate Trustees from the DDEP has been made by the Chamber of Corporate Trustees (Pensions Chamber) urging Boards of Trustees and Employer Sponsored Schemes not to engage government on its Domestic Debt Exchange Programme [DDEP] in its present form.
According to the Pensions Division of the Chamber, the DDEP in its present form is inimical to the pensions industry and until the Boards of Trustees and Employer Sponsored Schemes have first renegotiated for a favourable term for the pensions industry, it must avoid any engagement with government on the current form of the DDEP.
In a letter dated December 15, 2022, the Pensions Division of the Chamber stated that, since the announcement of the domestic exchange programme, the Chamber of Corporate Trustees on behalf of the pensions industry has been advocating for the pensions industry to be ring-fenced or the terms renegotiated.
“As at today, 15th December 2022, the Pensions Chamber has written to the Minister of Finance to extend the deadline of the Domestic Exchange programme by one month to allow for the renegotiation of the debt by the domestic bondholder committee”.
“We would therefore advise your schemes not to engage in the debt exchange in the current format until we have renegotiated a favourable term for the pensions industry”, it noted.
