Audio By Carbonatix
The President of the National Association of Graduate Teachers (NAGRAT), Angel Carbonu has said none of the organisations whose pension funds will be used for the debt exchange programme has signed up.
An earlier deadline date (December 19) for these organisations to sign up for the programme was extended to December 30 on Monday.
Government has indicated that the programme is a key requirement for an IMF bailout and has urged all bondholders and financial institutions involved to collaborate for the country’s debt level to be made sustainable.
However, Mr. Carbonu said none of the organisations has signed up for the programme despite the previous December 19 deadline date.
Speaking on JoyFM's TopStory on Monday night, he said “As of today, no organisation is signed onto the debt exchange programme. I don't know about the banks and others and I haven't done inquiries about them, but those with their pension funds involved have not signed up.”
He continued that, Organised labour was expecting government to “realise that it has done a very monumental mistake in the first place in announcing such a programme that affects pension.”
According to him, labour unions did not sign up for the programme because they expected them to revise the terms, especially when government “reneged on its primary responsibility of engaging stakeholders to see whether this is workable or not.”
It would be recalled that government on December 5, 2022, announced a debt restructuring measure.
According to Ken Ofori-Atta, the objective is “to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”
Bondholders like pension funds, banks and insurance firms will have to exchange their bonds for one that will earn zero interest next year.
The new bonds will only begin to earn five per cent interest in 2024 and 10 per cent for the remainder of their tenure. The maturity dates have also been extended with the first bonds only maturing in 2027.
Labour unions have continuously opposed the programme describing it as “draconian” and that it would drastically affect their pension funds.
Organised Labour in that regard has declared an indefinite strike effective December 27, 2022, since the government has failed to exempt them from the exchange programme.
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