Ghana Bondholders Forum debunks claims of economic hardship in rejection of debt exchange programme
The Ghana Individual Bondholders Forum, led by its convenor Senyo Hosi, has rejected claims that the rejection of the domestic debt exchange program by individual bondholders would lead to economic hardship for the country and render their bonds worthless.
According to Hosi, data from the Finance Ministry shows that such claims are false and intended to create fear and panic among bondholders.
In an interview, Hosi stated that signing onto the debt exchange program would actually make one’s bonds potentially worthless and irredeemable.
He advised bondholders to retain their current bonds instead of exchanging them for new ones, as the government would have immunity in the event of default, thereby significantly reducing the value of the new bonds.
This comes after NPP stalwart Gabby Otchere-Darko urged bondholders to participate in the debt exchange program, despite its potential impact on them, as a necessary step to salvage the economy.
He, however, emphasized that bondholders would be better off holding on to their current bonds rather than participating in the exchange program, as the government would be granted immunity in the event of default.
Mr Hosi also highlighted that under the current bond framework, bondholders have the right to sue the government and receive reparations in the event of default, but this right would be waived under the debt exchange program, with the government being granted immunity.
He argued that this significantly reduces the value of the new bonds, as successive governments could restructure debt repayments without consequence.
