Finance Minister is not putting gun on head of pensioners as he proposes new debt restructuring – Sly Tetteh

 The Finance Minister Ken Ofori-Atta is not forcing pensioners to take part in the proposal for new debt restructuring, Member of Parliament for Ngleshie-Amanfrom, Sylvester Tetteh says.

He says the Minister is only inviting the Pensioners.

Speaking on the Big Issue on TV3 Monday April 17, he said the government could not be described as wicked and incompetent as was indicated by Ningo Prampram lawmaker Samuel Nartey George who also spoke on the same show.

“(The Finance Minister) is only making a proposal and inviting people into it,” he said.

“He is not putting gun on the neck of the people,” he added.

Mr Ofori-Atta has proposed a new debt restructuring.

He is invitting Board of Trustees of pensions funds to permit pension funds to be added in the new proposal.

He explained that the proposal has been “crafted to facilitate the execution of the MoU, addressing the Government financial needs while maintaining the value of the pension funds.”

“The proposed offer entails exchanging your current holdings of Treasury Bonds, ESLA bonds and Daakye Bonds for a menu of the currently outstanding New Bonds (issued in February 2023 and maturing in 2027 and 2028 respectively. New Bond 2027 and New Bond 2028 featuring an average coupon of 8.4 % with a ratio of 1.15x, thus entailing an increase in patrimonial value.

 

This complemented by an additional cash payment of 10% (strip coupon). The stream of coupons to be received as part of this proposal will therefore be 21% compared to the current 18.5% of the outstanding of old bonds.”

He further indicated that “in 2023 and 2024, both instruments will pay 5% coupon in cash and the remainder will be capitalized into the nominal amount of the two bonds in order to comply with the cash constraints and the macro-framework defined under the programme with International Monetary Fund (IMF).”

Source: 3news.com/Ghana