The Vice President, in charge of research at IMANI Centre for Policy and Education, Bright Simons, has alleged that Jubilee House officials and members of the Economic Management Team (EMT) are against the inclusion of individual bondholders in the Domestic Debt Exchange Programme (DDEP).
In a series of tweets on Thursday, the Founder and President of mPedigree also alleged that the Ministry of Finance is lacking the support of even Cabinet in its decision to include individual bondholders in the Debt Exchange Programme.
His tweets come after the Individual Bondholders Forum insisted on the complete exclusion of its members from the Domestic Debt Exchange Programme, stating that their inclusion will destroy household confidence in Ghana’s financial system and securities market.
How long can Finance Ministry hold out against sentiment in Ghana’s Economic Management Team that individuals must be formally exempted from the debt exchange program? And now reports of Jubilee House also moving in that direction. Ministry insists 5% in 2023 is last offer. 🤔
— Bright Simons (@BBSimons) January 26, 2023
Meanwhile, the Finance Ministry is pretty isolated at Cabinet this afternoon. Will be interesting to see whether their nerves will hold as the rest of the government begins to buckle under pressure.
— Bright Simons (@BBSimons) January 26, 2023
The Individual Bondholders Forum on Thursday petitioned Togbe Afede XIV, the Agbogbomefia of the Asogli State, to help them get an exemption from the Domestic Debt Exchange Programme.
Addressing the former President of the National House of Chiefs on Thursday, the Convener of the Individual Bondholders Forum, Senyo Hosi said: “Togbe the matter is an eye red matter and for someone who has led the capital market and being one of the players who birthed the capital market, besides your royal place as the Agbogbomefia of the Asogli State, you are a pioneer in this industry, I do not want to believe this is your voice and the destination you assured us when your voice was heard back then.
“So we are here to petition your office, to petition you as an individual and the state of Asogli not to sit by and watch the lives of 6.5 million people devastated and subjected to shackles of penury. So our plea here is very simple, the steps being taken by the government are unsustainable and very unnecessary.”
The Individual Bondholders Forum led by Senyo Hosi has recommended to the government to divest loss-making, defunct and troubled 17 State–own enterprises.
The Individual bondholders also suggested that the government review the Free SHS Programme to make it more efficient through effective targeting and allowing parents who can pay to do so.
According to the group, “beneficiaries should be students that patronize Senior High Schools in their communities whilst other students should pay for boarding. However, the government can pay for students who do not have Senior Secondary schools in their communities.”
The group stated that divesting the 17 non-performing SOEs and reviewing the free SHS alone will provide the government with two billion cedis.
The group also urged the government to maintain the 2022 capital expenditure level by reducing the non–ABFA MDA and foreign finance Capex provisions by 50% which they claim will provide the 10.7 billion Ghana Cedis.