Convener of the Individual Bond Holders Association of Ghana (IBHAG), Martin Kpebu, says the Finance Minister has assured that individual bondholders are exempted from the domestic debt exchange programme.

According to him, the Finance Minister, Ken Ofori-Atta has promised to “pay Individual Bondholders their coupons and principals as they fall due, thus effectively exempting us from the Domestic Debt Exchange (DDE) programme.”

In a press statement announcing the Minister’s assurance, he noted that the group is awaiting formal communication from the Finance Minister to affirm their exemption from the debt treatment.

“We are grateful to the Minister and his technical team for their cooperation. We are also happy that the government has reached agreement with the banks, insurance companies and securities industry companies for their participation in the DDE,” he added.

This comes after the government proposed that all bondholders will not receive any interest on their bonds for the 2023 financial year in its bid to rescue the economy and secure a deal with the International Monetary Fund (IMF).

The payment of dividends, according to the government is likely to begin next year, 2024 at a discounted rate of 5%.

But individual bondholders vehemently fought the decision and also protested the lack of prior engagement between individual bondholders and the Finance Ministry concerning their inclusion into the programme.

Following the Finance Minister’s U-turn, Martin Kpebu has urged all individual bondholders to remain calm and not sign up for the new bonds.