Convener of the Individual Bondholders Forum, Martin Kpebu, has bemoaned the high levels of financial illiteracy in the Ghanaian society.

According to him, due to most Ghanaians not knowing how the financial sector works, it has given government the leeway to do as it pleases without hindrance.

He was referring to the government’s ‘coercion’ of financial institutions to sign onto the domestic debt exchange programme.

He said, if most Ghanaians were aware that they had a stake in the running of the banks there would have been a stronger fight to get the banks not to sign onto the disadvantageous debt exchange programme.

“What this has taught me about the Ghanaian system is that I think we’re not that financially literate, because the way we’ve sat down for the banks to be treated in this manner is a shame. I realized it too late. And I think Dr. Atuahene who mentioned it. And we say we’re shareholders of the banks.

“So Evans, how come we sat down as citizens and just watched government twist the arms of the banks to go sign up as shareholders we didn’t care that much. Me by the time I realized it, by the time it struck me that we owe shares in some of these banks they had signed up. So it tells you that we’re not that financially literate so it’s easy for government to do what government wants.

“It’s a shame, it’s a big shame. Because now that government has signed the agreement with them, this year we’re going to lose dividends, we are going to lose dividends, and how come we didn’t put up a fight that government shouldn’t do this kind of agreement because you know at a point especially the banks that had very little exposure in these bonds, they were stalling, they didn’t want to sign.

“You know, there was a pushback but citizens didn’t come to help them and then eventually they signed. But maybe next time we should watch, our society I think the financial illiteracy is too high for comfort. It’s not good,” he said.

The Ghana Association of Banks decided to sign onto the debt exchange programme following a new agreement with the Finance Ministry which include;

An agreement to pay 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds resulting in an effective coupon rate of 9%, clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF) and the removal or amendment of all clauses in the Exchange Memorandum that empowers the Republic to, at its sole discretion, vary the terms of the Exchange.