Executive Secretary of the Chamber of Corporate Trustees, Thomas Kwesi Esso, says the decision by pension funds to join the Domestic Debt Exchange Programme (DDEP) resulted from the favourable conditions and agreement reached with government.

Speaking on Joy FM's Super Morning Show, he said when the DDEP was introduced in December, 2022, the conditions were not favorable or fair to the pensioners, hence their withdrawal but over the months, several engagements have taken place.

 “In December when we issued our press statement, we categorically stated that the terms that have been proposed do not meet the workers' expectations, so we rejected it and since then we all have not gone to sleep.”

“So we continued to engage government, even when the first DDEP ended till now, and we’ve all arrived at a situation that we think is beneficial to all of us.”

“So we believe that where we have gotten now is acceptable to the pension industry,” he said

According to him, they wanted to ensure that the bonds were tradable and liquid enough such that when the coupons are due, government will be trusted to pay those mature bonds.

“We set out our objective that we don’t want the patrimonial value of the bond to be lost, we also wanted to ensure that the bonds are tradable because if you leave the old bonds in its state there was no way it was going to trade on the Ghana Fix Income market.”

“…Because the old bonds would’ve lost its value and will have many risks so people will be looking for the new bonds.”

“Since we’re satisfied with the conversations, the financial aspect and the assurances that government has given to us, I think it’s right to give the green light to our pension fund schemes to consider accepting the alternative offer that has been presented,” he explained.

Mr. Esso also urged government to deliver on its promises because it would be disappointing if they do not.

He added that a contract has been signed and if government goes contrary to its promise, the association will take action.

“If you extract an assurance from somebody, it is backed by documentation and the documentation is the exchange of memorandum that is before all of us that we are reading.”

“I am saying on behalf of the industry and you the worker, until government has done otherwise, then I cannot say government has not kept its promise.”

“So until something otherwise happens, that is when we will know our next action,” he said.

Mr. Esso added that government has assured that their mature coupons will be paid this August.

Background

Government on July 31, 2023 announced the restructuring of GH¢31 billion pension funds in the next phase of its Domestic Debt Exchange Programme (DDEP).

According to the Ministry of Finance, the exercise will affect the E.S.L.A. Plc and Daakye Trust Plc.