The University Teachers’ Association of Ghana (UTAG) has finally accepted Organised Labour’s decision to allow the Finance Ministry to restructure some GH¢ 31 billion bonds owed to the various pension funds.

Per the explanation given by UTAG President, Professor Solomon Nunoo, this decision borders on pieces of advice offered to the association by both Organised Labour and fund managers.

Professor Nunoo told JoyNews that, “initial discussions we have held with the fund managers direct us to this belief. And that is why we said that in the current term as we saw the document, then it will be good for us to accept it in its current state. So, if you look at the whole thing, the fund managers are the financial advisors to these labor unions and their advice on how to make use of funds to ensure that our retirement would be a good one. 

“So, once the advice came, we felt that it's important that we do respond in this particular way. And that is why we did so. But the fund managers are the professionals and they have been advising us all through the discussion. So, we believe that we are in a state that if we are okay with it, then once they expertly believe that it's okay for us to go ahead, we can do so.”

He affirmed that whatever decision the fund managers take at the end of the day, it has the blessings of UTAG. 

This acceptance by UTAG follows Organised Labour agreeing to the government’s proposal to restructure the terms of the pension funds’ bonds.

Organized Labour has in the past few months rejected government’s attempt to restructure the terms of the pension fund’s bonds, as part of the Domestic Debt Exchange Programme.

But the union has in a recent statement, made a U-Turn after some consultations with the fund managers on the terms of the new Exchange Memorandum.

Reports have it that Organised Labour agreed to the government’s proposal on the basis that, the finance ministry assured that although the maturity periods of the bonds held in trust by the pension fund managers would be extended, the principals would not suffer any major haircut.

The second reason that the Organised Labour stated was that they believe there is a window of opportunity for the fund managers to trade their principals on the secondary bond market.

The final reason was that they had the assurance that the pensioners' coupons and other maturities would be paid promptly.

These terms, Organised Labour said, were better than previous rejected offers.

Moreover, the finance minister, Ken Ofori-Atta emphasised that the exchange is crucial for the progress of Ghana’s economy.