The amended GH¢137.3 billion domestic bond exchange programme now includes individuals, as part of efforts by the government to restructure debts.
This is to help secure an approval from the management and executive board of the International Monetary Fund (IMF) for a US$3 billion loan-support programme, to address Ghana’s current economic crisis.
When the exchange programme was launched earlier in December 2022, individuals were not included, but after the government agreed to demands from organised labour to exclude pension funds, the government amended the programme to include individual investments.
A press statement dated December 24, 2022, issued by the Ministry of Finance noted that in addition to foregoing extensions the government was “expanding the type of investors that can participate in the Exchange to now include Individual Investors.”
Other modifications to the debt exchange programme included the setting of a non-binding target minimum level of overall participation of 80 per cent of aggregate principal amount outstanding of eligible bonds. 
The Ministry also said: “Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023.” 
There would also be eight new instruments to the composition of the new bonds, for a total of 12 new bonds, one maturing each year starting January 2027 and ending January 2038. 
However, the Ministry said the modifications would be set forth fully in an Amended and Restated Exchange Memorandum, expected to be published in the week of December 26, 2022.
“Conforming changes (including adding and modifying defined terms) in respect of the above amendments and modifications to cure ambiguity, omission, defect, error or inconsistency may be included in the Amended and Restated Exchange Memorandum,” the Ministry added.
The government has further extended the deadline for voluntary participation in the debt exchange programme to January 16, 2023 from the previous December 30, 2022
Source: graphic.com.gh
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Individual bondholders WILL & MUST also REJECT this debt exchange proposal in its current form - same as all the other bodies (ie. Labour, Financial & Insurance) have done, because the conditions are not favourable to investors at all and therefore unacceptable; 0% coupon in 2023 is a non-starter. However, proposing a reduction to 10% coupons for all existing bonds from 2023 may be considered by investors in the spirit of burden-sharing. It should be noted that most Individual bondholders are also pensioners who are yet to receive their locked up investments from fund managers as a result of the financial sector clean-up exercise that this same government conducted in 2019 and claims to have spent 25 billion Ghana Cedis on. GOG Bonds were considered to be safe because they are supposed to have a 0% risk rating (risk free) as they are backed by sovereign guarantee, and that is why investors including pensioners who wanted a top-up to their meagre pension allowance preferred to commit their hard earned funds in them. Government should therefore not take for granted, the trust reposed in them by the citizenry and shy away from its responsibility of honouring their part of the original agreement they had with bondholders at the point of sale, rather than hide behind a $3b IMF facility that comes with draconian conditionalities that will end up making bondholders worse off.
This is very unfair to the citizenry! It is absolute criminality!
Certainly Uncertain The Finance Minister- KOA, is gradually cementing his position in history as the most uncertain Finance Minister of this country. The only thing that is consistent about him is his inconsistency. In his announcement of the Debt Exchange Programme, he categorically stated that TBills and Individual Bond holders are exempt from the programme. After pressure from the Workers Union, he backtracked on the addition of Pension Funds. This was a welcoming news since pension contributors are individuals and so if individuals are exempt then it stands to reason that the pension funds which is made up of individuals contributions should be exempt. The Minister is however at it again, making a sudden U turn and surreptitiously adding back Individuals, the very reason why Pension Funds are now exempt!!! Isnt that confusing??? 1. Most of these individuals are pensioners who invested their lump sum after pensions. 2. With the life expectancy of less than 60 years how are we asking these individuals to enter into an exchange for a bond with a 2038 maturity??? 3. How are individuals going to access the liquidity support, which might not even exist by tomorrow... 4. How are individuals with commitments planned ( including school fees) according to the coupon payments, suppose to meet these commitments. Someone said he will have to withdraw his ward in 2nd year medical school because there is no way to pay the fees if coupon payment is frozen😢. 5. Individuals without perpetual existence and with limited financial knowledge and support, relied on government bonds for the safest of investment. The notion that individual bond holders are well to do is a misjudgment. They are risk averse because there is nothing to fall on in the event of a disappointment... and that is what the government is offering??? I hope the statement going round is a fake one, else the assertion being made that the Pension Funds were exempted because of pressure on Databank and not because it's made up of Individuals will gain currency if the same Individuals outside Databank are now being added... Now you cant even close your eyes again for fear of what you will wake up to see from those supposed to protect you... Smh Gh.. I am for peace. )wiemfo)ba
This surely is the end of bonds in this nation. If this should go through, it will bring a lot of hardship to the banking system. No one will be comfortable enough to invest in this country. The painful part is the fact that a lot of retirees have invested their lump sum retirement packages into these bonds. How are they suppose to cater for themselves in the long run?