The hopes of members of the Ghana Insurance Association of being excluded from the Debt Exchange Programme will not materialise.
This is because the Finance Ministry in a letter to the Association signed by the Minister, Ken Ofori-Atta categorically says an exemption is not an option for the group.
The Association in December last year wrote to the Ministry demanding an exemption from the Programme.
According to its president, Seth Kobla Aklasi, 40 percent of its total assets for the Quarter 3 of 2022 were invested in Government of Ghana Securities hence any attempt to give its members a “haircut” will worsen the situation.
However, the Finance Ministry in responding to the group, explained that based on feedback from industry players, it has made some significant adjustments to the programme and will not exempt insurers.
“Based on your letter and the feedback from you and other industry associations, the Government, working with its advisors, has made significant enhancements to the terms of the exchange instruments to address key concerns raised about accrued interest and zero coupons for 2023. The government has also improved the commercial terms of the exchange instruments; which details were announced on 24th December 2022.
“In this regard, Government encourages a positive response from the industry to enable us to complete the exercise in the interest of the broader economy. In our meeting…you made it very clear, the peculiar nature of your industry and therefore the forbearance required; an exemption, however, is not an option,” parts of the statement read.
Government after securing a $3 billion staff-level agreement with the International Monetary Fund (IMF) is struggling to restructure its debt, a requirement for approval of the IMF programme.
With much effort to stabilise its debt, the government announced a Debt Exchange Programme in December which it said would affect local bonds, individual investors and international bondholders.
Government said local bonds were to be exchanged for new ones maturing in 2027, 2029, 2032 and 2037, with annual coupons set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity.
The government had to postpone the deadline on three occasions after groups involved in the programme opposed the debt sustainability with fears of a 'haircut' on investment.
A new date of January 16 was set as the deadline for registration unto the programme after pension funds were excluded from the programme and individual bondholders included.
Government then made some modifications to the programme including an increase in the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038.
Latest Stories
-
Reduce over-reliance on imports to stabilise cedi – TUC boss tells Ghanaians
13 mins -
‘We’re taking it game by game’ – Ibrahim Tanko on Accra Lions’ title ambitions
22 mins -
Nigerians pick sides as Wizkid and Davido clash online
27 mins -
Nigeria Workers’ Day: Civil servants get pay rises up to 35%
32 mins -
“I am the Austrian team boss with all my heart,” Rangnick turns down Bayern
51 mins -
Failed asylum seeker given £3,000 to go to Rwanda
52 mins -
Nigerian gasoline prices soar as shortages worsen cost of living crisis
1 hour -
Paris 2024: We will win medal at Olympics if government invests more – GPC President
1 hour -
Akufo-Addo calls for protection of Ghana’s democratic reputation and identity
1 hour -
Apple working to fix alarming iPhone issue
1 hour -
‘You won’t win GPL title without your own stadium’ – Bashir Hayford tells Kotoko, Hearts
1 hour -
Ryan Garcia denies using performance-enhancing drugs after beating Devin Haney
2 hours -
We must change phenomenon of moneyed elections – Raymond Atuguba
2 hours -
Accra Lions punished us for not taking our chances – Hearts of Oak assistant coach Abdul Bashiru
2 hours -
Biosafety Authority welcomes court’s dismissal of application seeking injunction on approval of 14 GMOs
2 hours