Labor Union reiterates promise to keep pension funds out of debt exchange programme

Organised Labour in Ghana has reaffirmed its commitment to exempting all pension funds from the Domestic Debt Exchange Programme (DDE).

In a statement issued on Wednesday, the group declared that it would not participate in, or allow its Pension Schemes to participate in, the DDE.

Organised Labour cites an agreement signed with the government of Ghana on December 22, 2022, as the basis for its stance.

The agreement, signed by Finance Minister Ken Ofori-Atta, Minister for Status and Labour Relations Ignatius Baffour-Awuah, and Secretary General of TUC Dr. Anthony Yaw Baah, stated that the non-inclusion of pension funds in the DDEP was final.

The government has extended the deadline for the DDEP for one week, to February 7, 2023. In a recent statement, the finance ministry said that new terms of the exchange had been accepted and a revised and final Exchange Memorandum would be released by February 2, 2023.

Organised Labour has assured all workers that it will continue to protect their interests.
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Meanwhile, the government has offered concessions to individual bondholders in an effort to encourage their participation in the DDEP.

These concessions include instruments with a maximum maturity of five years, instead of 12 years, and a 10% or 15% coupon rate for those under 59 years or retirees, respectively.

The government is still in the process of finalising discussions with Organised Labour and Pension Fund Trustees, according to the memorandum of understanding signed on December 22, 2022.

Source: norvanreports.com