In response to recent remarks by the Finance Minister regarding Ghana’s Eurobond debt restructuring, a group of pensioner Eurobond holders in Ghana has voiced their deep disappointment and frustration.
The Finance Minister’s announcement that Eurobond investors have forgiven $5 billion of Ghana’s debt has been received with dismay by these pensioners, who feel left out of the debt negotiations and severely impacted by the restructuring process.
The affected pensioners express that despite following the government’s press releases on the Eurobond restructuring closely, there has been no acknowledgement of the small group of Ghanaian pensioners holding these bonds.
Instead, the focus has been on negotiations with international and commercial bondholders, who, unlike the pensioners, are better positioned to handle the severe financial terms of the restructuring.
Under the current restructuring plan, Eurobond holders face a 37% haircut, reduced interest rates, and significantly extended maturity dates of up to 10 years and beyond.
While institutional investors may have the capacity to absorb these losses, the pensioners argue that the terms are too harsh for individuals who had hoped to rely on their bond investments to support themselves in retirement.
Read also: Re: Eurobond investors forgive Ghana $5bn debt
For these elderly citizens, the returns from their Eurobonds were meant to provide financial security in their later years, especially to cover recurring medical expenses.
The pensioners have made several unsuccessful attempts to engage the government on their concerns, submitting letters to the Finance Ministry without receiving any response.
They argue that the restructuring’s adverse financial effects are unbearable, particularly after two years of zero-interest payments, which has already caused significant hardship.
“We, the affected pensioners, write to express our deep disappointment and frustration with this turn of events,” the pensioners stated.
“At our age, and being on retirement, the 37% haircut, reduced interest rates, and longer tenor will affect us adversely, resulting in significant financial losses which we can hardly afford.”
In light of the Finance Minister’s recent call for bondholders to accept the restructuring terms, the pensioners are pleading for exemption, citing their vulnerability.
They urge government to consider alternative solutions that do not further erode their financial stability.
Key among their requests are:
• Exemption from the Eurobond restructuring for pensioners and other vulnerable groups.
• Exploring alternative solutions that safeguard their financial security.
• Meaningful engagement with the government to discuss and address their specific concerns.
The pensioners stress that their numbers are small, and their request for exemption is a reasonable plea given their limited financial resources.
They are calling for the media and the public to take note of their plight and support their appeal for a fairer approach to the debt restructuring process.
Having exhausted other avenues, the pensioners have resorted to the media to highlight their predicament in hopes of finally being heard by the government and achieving a more equitable resolution to their situation.
The group has provided names and contact persons for follow-up responses, which they expect from government.
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