The Individual Bondholders Association of Ghana (IBHAG) has withdrawn from the Technical Committee of the government’s Domestic Debt Exchange Programme (DDEP) due to concerns that the deliberations are not in the best interest of its members.
The group argues that the process is causing pain to its members and deviates from promises made by the government.
IBHAG’s Convener, Martin Kpebu, in a letter addressed to the Minister of Finance on behalf of the group, said the government could not continue to be insensitive to the suffering of individual bondholders and urged a more humane approach.
“We write to recuse the Individual Bondholders Association of Ghana (IBHAG) from the deliberations of the Technical Committee. This has become necessary as the deliberations so far seem not to serve the primary interest of the distressed bondholders which is to access their lock-up investments. So far, the process is turning out to rather impose a further degree of pain and despair on the bondholders and also depart from promises made by government to them,” the letter said.
“The Government cannot continue to be insensitive to the suffering of the individual bond holders by deliberately punishing those who did not sign up to the DDEP as it meticulously executes the various threats made to them for not signing up. The Ministry cannot keep making things comfortable for the government by not sharing in the burden of the economic hardship we are in as a country under its leadership”.
He also criticized the Convener of the Individual Bondholders Forum (IBF), Senyo Hosi, for his position on the matter, stating that he appears to be doing the Ministry of Finance’s bidding.
“Senyo Hosi of IBF, appears to be an appendage of the Ministry of Finance; doing its bidding. This is supported by the wavering views, which departs completely from the past collective position of individual bondholders. Private meetings between Senyo Hosi of IBF and the Ministry of Finance, are not the solutions to the concerns of Individual Bondholders whose coupon and principal payments have been in arrears for over two months”.
The statement stressed that IBHAG will hold on to the agreed timeline for receiving outstanding principals and coupons.