The Ghana Individual Bond Holders Forum has said that the recent agreement between the government and the Ghana Association of Banks (GAB) on the Domestic Debt Exchange (DDE) programme re affirms the need to exclude individual bond holders and collective investment schemes from the programme.
In a release signed by the Convener of the Group, Senyo Hosi, the group argued that with banks onboarding, the government was set to reach its 80 per cent target.
“This development reaffirms the need for government to exclude individual bondholders,
including individuals and collective investment schemes (CIS), who account for less than 11 per cent of the eligible bonds,” the release noted.
The group said it had observed with delight government’s various incentives provided to the banks which among others include the Bank of Ghana’s revisions to the prudential rules
including reductions in the Capital Adequacy Ratio and the Cash Reserve Requirements.
“To make it much more functional, the government will be providing a financial stability fund to support the viability of the banks.
“Unlike the banks and other institutions who are set to benefit from various
regulatory incentives, individual bondholders have no fall back nor incentives and will be condemned to shackled penury,” it stated.
It therefore urged the government to absolutely exempt individual bondholders, including individuals who hold eligible bonds under the DDE through collective investment schemes from its DDE programme.
“We maintain that cutting government expenditure and optimizing revenue is the sure winner for Ghana in these difficult times.”