Individual Bondholders Withdraw From Technical Committee

The Individual Bond Holders Association of Ghana (IBHAG) has written to the Minister of Finance, Ken Ofori-Atta, to recuse itself from deliberations of the Technical Committee set up to address concerns regarding domestic bonds in government’s debt restructuring efforts.

The Association said its decision has become necessary “as deliberations so far seem not to serve the primary interest of the distressed bondholders which is to access their locked-up investments”.

Members of the Association had resisted the Domestic Debt Exchange Programme (DDEP) when it was rolled out.

They have accused government of failing to honour its side of the bargain particularly on decisions taken at the level of the Technical Committee, chaired by a Deputy Finance Minister, Abena Osei Asare.

“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,” a letter to Mr Ofori-Atta said.

Signed on behalf of the Association by lawyer Martin Kpebu, the letter said IBHAG will hold on to the already agreed timelines per the Friday, April 14 meeting held with the Ministry. At the said meeting it was agreed, that all outstanding principals and coupons will be paid.

The Association also accused a convener of the Ghana Individual Bondholders’ Forum, Senyo Hosi, of holding private meetings with the Ministry much to the disadvantage of the Coalition of Individual Bondholders Group.

It said the private meetings cannot be the solution to the concerns of members as some have suffered distress “and in an instance the death of a member”.

“We urge you to consider a more sensitive and humane approach to alleviating the plight of suffering Individual Bond Holders in Ghana.”