Pensioners threaten to resume picketing over unpaid bonds
The Pensioner Bondholders Forum, which includes prominent figures such as former Chief Justice Sophia Akuffo, has served notice of resuming picketing at the Ministry of Finance if all outstanding coupons and principals are not paid by Friday, April 28. The forum’s action is a result of what they say is a failure by the Finance Ministry to pay outstanding coupons and principals owed to pensioners who opted out of the Domestic Debt Exchange Programme (DDEP).
The DDEP, which was introduced in 2019 as part of the government’s efforts to manage its debt, allowed holders of government bonds to exchange their existing bonds for new ones with longer maturities and higher interest rates. However, many pensioners who opted out of the programme have complained of delays in the payment of their coupons and principals, with some payments remaining outstanding.
The Pensioner Bondholders Forum began mass action in February against the Finance Ministry for initially including their bonds in the DDEP. While some progress has been made in resolving the issue, with agreed dates of payment being missed and some payments remaining outstanding, the latest deadline of Friday, April 21, stirred controversy.
Dr Adu Antwi, the Convener of the Forum, had proposed a one-week extension to the deadline, but a press release by the Ministry of Finance seems to have put out “misleading” facts, according to the Forum. The press release announced an agreement with the Forum to extend the deadline to April 28, but the Forum claims that the extension had already been agreed at the meeting with the Deputy Minister of Finance, Abena Osei Asare.
The Forum has therefore announced its intention to resume picketing at the Ministry of Finance if all payment is not made by April 28. The situation highlights the challenges faced by the government in managing its debt, and the impact that delays in payments can have on pensioners who rely on the income from their bonds.
In recent years, the government has introduced a number of measures to manage its debt, including the DDEP, which was designed to reduce the government’s interest payments on its debt. However, the programme has been controversial, with many bondholders complaining of losses and delays in payments.
The government’s debt management strategy is an important issue for investors, as it can affect the country’s credit rating and its ability to access international markets. While the government has made progress in reducing its debt in recent years, it still faces significant challenges, including the impact of the Covid-19 pandemic on its economy.
The Pensioner Bondholders Forum’s action is a reminder of the importance of managing debt in a way that is fair and transparent, and that takes into account the needs of all stakeholders. It is also a reminder of the need for effective communication between the government and its bondholders, to ensure that issues are resolved in a timely and satisfactory manner.
