Finance Minister communicates exclusion of pensioners from debt exchange
Finance Minister, Ken Ofori-Atta, has written to the Pensioners Bondholders Forum to inform them that their bonds are exempt from the Domestic Debt Exchange Programme (DDEP).
The move comes after several days of protests by senior citizens, who fear that the DDEP will have a negative impact on their finances. The Finance Ministry has maintained that participation in the debt restructuring is voluntary, and pensioners are free to decide whether or not to participate.
However, some pensioners have insisted that the Minister make it formal and include their exemption from the debt restructuring. Speaking in Parliament, Mr Ofori-Atta stated that he had communicated the pensioners’ exclusion in writing to the convenor of the Pensioners Bondholders Forum, following Wednesday’s engagement with the pensioners during their picketing.
“I subsequently wrote to their convenor letting him know that all pensioners who did not participate in the bond offering are exempted,” the Minister told the House. He expressed hope that the move would allay the fears of the pensioners.
However, convenor of the Pensioners Bondholders Forum, Dr Adu Anane Antwi, has stated that he has not received any letter from the Minister confirming the exemption of pensioners’ bonds from the DDEP.
The deadline for the DDEP has passed, with the Ministry confirming that around 85% of bondholders participated in the debt restructuring.
The DDEP has caused concern among some senior citizens, who believe that it could have a negative impact on their finances. The Finance Ministry has maintained that participation in the debt restructuring is voluntary and that pensioners are free to decide whether or not to participate.
The Ministry has also stated that the DDEP is part of efforts to reduce Ghana’s debt burden, and that it will help to reduce interest payments on the country’s debt.
The protests by pensioners highlight the challenges that many countries face in managing their public debt. High levels of debt can put a strain on a country’s finances, making it more difficult to fund public services and invest in infrastructure.
However, debt restructuring programs can also have a negative impact on vulnerable groups, such as pensioners, who may be more dependent on fixed incomes.
The case of Ghana also raises broader questions about the management of public finances in Africa. Many African countries are heavily indebted, and debt servicing costs can eat up a significant portion of government revenue.
Efforts to reduce debt burdens must be balanced against the need to invest in public services and infrastructure, which are essential for economic growth and development.
While the Finance Ministry’s move to exempt pensioners’ bonds from the DDEP may help to allay some fears, it remains to be seen how effective the debt restructuring program will be in reducing Ghana’s debt burden.
The protests by pensioners also highlight the challenges that many countries face in managing their public debt, and the need for a balanced approach that takes into account the needs of vulnerable groups.
