The Ghana Insurers Association (GIA) has urged its policyholders to remain calm and not panic as the agreement reached with government on the Domestic Debt Exchange (DDE) Programme will not have any significant impact on the Industry.

According to the association, it has proposed to the Ministry of Finance to consider a tax rebate for its members to cushion them against shocks from the debt exchange programme.

It comment follows an agreement reached with the Government of Ghana for the participation of insurance companies on the DDE programme.

Under the agreement, insurance companies will participate in the programme on similar terms as the banks. The government agreed with banks to pay a 5% coupon on its 2023 bonds, which the original debt exchange plan had proposed zero interest.

Speaking to Joy Business, Chief Executive Officer of the Ghana Insurers Association, Dr. Kingsley Kwabahson, said there will be more engagements with the regulator (National Insurance Commission) on some of the forbearances in order to stay afloat.

“We’ve asked the Ministry of Finance for us to have an engagement with the Ghana Revenue Authority so that we agree on a tax rebate. We will have further discussions with our regulator on some of the forbearances that we are likely to have”.

“This is just to ensure we stay afloat in these difficult times”.

Meanwhile, government is racing against time, to get the buy-in of individual bondholders by January 31, 2023.
However, sources say, the Presidency has directed the Finance Minister to exclude individual bondholders from the programme.