The Individual Bondholders Forum (IBF) have issued a 48-hour ultimatum to government to honour payments of matured bonds following an earlier agreement and conclusion of the Domestic Debt Exchange Programme.
The group in a statement expressed disappointment at the government for reneging on its promise to honour payments – for the third time after it missed two coupon payment dates.
Finance Minister, Ken Ofori-Atta had earlier given the assurance that Individual Bondholders who opted out government’s Domestic Debt Exchange Programme will be paid their matured bonds on February 15, 2023.
Convenor for the Individual Bondholders Forum, Senyo Hosi, in the communique issued on Monday 14, 2023 called out the finance ministry for disregarding creditors.
“At the close of business on 13th March 2023, the Ministry of Finance, led by Hon. Ken Ofori-Atta, has disregarded all the basic rules that have been established to protect the integrity of the local markets and maintain sovereign credibility for Ghana. It is most unfortunate that the ministry continues to have absolute disregard for its creditors, in this case, Individual bondholders, despite prior meetings held in which we stated the need for communication,” the statement read.
The group continued, “the coupon and principal payments due to Individual Bondholders who opted out of the Voluntary Domestic Debt Exchange programme have not been paid, despite written press releases confirming the resumption of payments on 13th March 2023.”
“The umbrella regulator of the Securities markets – Securities and Exchange Commission (SEC), Ghana – charged with a mandate to protect investors and market integrity have also maintained a loud silence throughout this period on the plight of Individual Bondholders,” the IBF added.
The group has therefore issued a 48-hour ultimatum to the Ministry of Finance to honour its promise in paying matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana.
Read the full statement below: