Non-payment of matured bonds: Coalition of Individual Bondholders petition Akufo-Addo

The Coalition of Individual Bondholders Groups in the country have petitioned President Nana Addo Dankwa Akufo-Addo over the non-payment of their matured bonds which were excluded from the government’s Domestic Debt Exchange Programme (DDEP).

The group, which is made of Ghana Individual Bondholders Forum (IBF), and the Individual Bond Holders Association of Ghana (IBHAG), has also accused the Ministry of Finance of persistently defaulting on paying their matured bonds despite several assurances from them that it will honor them.

In a statement issued and signed by the Convener of IBF, Senyo Hosi, and the Convener of IBHAG, Dr. Joel Djangma, they indicated their disappointments in government’s failure to honor five out of eight payments due to individual bondholders.

“We are saddened to have to resort to petitioning you for a resolution to the continuous non-payment of old bonds due. Your Excellency, you have been categorical in your assurances of payment to individuals who opted to trust your government and invest in its bonds.

“Unfortunately, contrary to your professed honourable position, Government has since the completion of the Domestic Debt Exchange programme (DDEP) failed to honour five out of eight payments due under the old bonds totalling about one billion cedis for individual bondholders,” the statement said.

The group further bemoaned that their willingness to cooperate with the Ministry of Finance, since the beginning of the DDEP, has been taken for granted.

“Unfortunately, our cooperation has been taken for granted. We have on four occasions requested the Minister of Finance to advise a payment schedule to provide guidance to investors. We are disappointed to bring to your notice that none of these requests has been responded to. Neither has our request to meet been honoured,” the Coalition stressed.

They also reminded the government that in the wake of the economic headwinds, the ability to save has become a major source of income that is supporting many families and therefore there is the need for them to honor the payments on matured bonds.

They added that failure to this will only create further distress among Ghanaians who are already reeling from the impacts of the economic challenges.

“Our members depend on these funds to meet pertinent needs like medication, children’s education and the general welfare of their families and include pensioners whose sustenance, health, dignity of independence and honour of responsibility in taking care of their young wards and families are contingent on these savings.

“We do recognise the fiscal challenges Government faces and for which reason we have expressed willingness to cooperate over a mutually viable payment schedule and structure,” the group lamented.

In conclusion, the Coalition said, “Your Excellency, your fellow Ghanaians are suffering unduly. We urge you to take urgent and necessary steps to rationalise this situation and honour your word to effect payments due to individual old bondholders”.

MA/AE