IBHAG recuses itself from Technical Committee; accuses IBF of private meetings with MoF
The Individual Bondholders Association of Ghana (IBHAG) has announced its recusal from the ongoing deliberations of the Technical Committee. The move comes in response to what IBHAG sees as a lack of progress towards the group’s primary goal: the recovery of their investments that have been locked up.
The Technical Committee, which was set up to oversee the resolution of the issue, has come under fire from IBHAG for failing to serve the interests of distressed bondholders. Instead, the group claims that the committee’s actions have caused further pain and despair for bondholders, departing from promises made by the government to them.
IBHAG has accused the government of being insensitive to the plight of individual bondholders by punishing those who did not sign up to the Distressed Debt Exchange Programme (DDEP). They argue that the Ministry of Finance is doing its bidding through Senyo Hosi of IBF, whose views they claim depart from the past collective position of individual bondholders.
IBHAG’s position represents a significant shift from their initial expectation of the government borrowing their funds. Some views expressed in private meetings with the Ministry of Finance, which IBHAG argues were not discussed with bondholders, have caused a lot of stress, and in one instance, the death of a member. IBHAG contends that the government should not sacrifice the lives of its citizens for its comfort.
IBHAG has called on the Ministry of Finance to focus on engaging with the leadership of individual bondholders and desist from private meetings with individuals who have disengaged from the interest of the collective. They have also expressed a willingness to continue working with the Pensioners Forum, which they see as more focused and determined to protect the investments of individual bondholders.
The issue of outstanding principals and coupons, which have been in arrears for over two months, remains a significant concern for IBHAG. They have committed to holding the already agreed timeline as per the earlier meeting on the 14th of April 2023 with the Ministry of Finance, where they expect all outstanding principals and coupons to be paid.
IBHAG’s recusal is a significant development in the ongoing saga of individual bondholders in Ghana. It highlights the growing frustration and discontent among bondholders and their representatives over the lack of progress towards resolving their grievances. The situation raises serious questions about the government’s commitment to protecting the interests of its citizens and ensuring that they are not unduly burdened by economic hardship.
It is imperative that the government takes a more sensitive and humane approach to alleviating the plight of individual bondholders in Ghana. A failure to do so could lead to a further erosion of public trust in the government and its institutions. The government must act swiftly to address the concerns of IBHAG and other bondholders and work towards a resolution that is fair, transparent and just.
