The Chamber of Corporate Trustees of Ghana has approved the participation of its members in the alternative debt exchange programme for pension schemes.

This follows an announcement by the Ministry of Finance for the restructuring of ¢31 billion pension funds in the next exercise of its Domestic Debt Exchange Programme (DDEP).

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

In a statement sighted by JoyNews, the Chamber said it had worked closely with Organised Labour in the provision of technical advice to enable it reach the current agreement that allows Pension Fund Schemes to participate in the offer.

"Board of Trustees of pension funds should independently assess the alternative offer from the MoF and participate in the exchange as they deem fit," the statement added.

Again, the Chamber said "to ensure the decision making is inclusive, we further recommend that pension funds convene emergency meetings of their Boards of Trustees to take appropriate decisions."

Background

The Ministry of Finance has announced the restructuring of ¢31 billion pension funds in the next exercise of its Domestic Debt Exchange Programme (DDEP).

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

This will include debt in the energy sector such as debt owed the independent power producers (IPPs) and the cocoa bills.

“This Invitation is intended to enable the Pension Funds to preserve their patrimonial value while exchanging their Eligible Bonds for Bonds that offer more potential liquidity” a statement issued by the Public Relations Unit said.

It explained that Eligible Holders tendering their Eligible Bonds pursuant to the invitation will receive Exchange Bonds of the Government on the terms and subject to the conditions described in the Exchange Memorandum.

It added that all offers to exchange Eligible Bonds made by Eligible Holders are irrevocable subject to withdrawal rights under certain limited circumstances.

The statement explained that by “tendering their Eligible Bonds, Eligible Holders represent and warrant that such Eligible Bonds constitute all the Eligible Bonds owned by them and consent to the blocking by the Central Securities Depository (CSD) of any attempt to transfer them prior to the Settlement Date (as defined below) or the termination of the Invitation by the Republic”.

Offers may only be submitted starting today (the “Launch Date”) and ending at 4:00 p.m. (Greenwich Mean Time (GMT)) on 18^th August 2023 (the “Expiration Date”).