No organisation whose pension funds would be utilised for the debt exchange programme has signed up, according to Angel Carbonu, president of the National Association of Graduate Teachers (NAGRAT).
On Monday, the program's initial sign-up deadline of December 19 for these organisations was extended to December 30.
The government has made it clear that the programme is a crucial condition for an IMF bailout and has urged all bondholders and financial institutions concerned to work together to reduce the country's debt to a manageable level.
Despite the prior deadline of December 19, Mr. Carbonu said that none of the organisations had signed up for the programme.
On Monday night, he declared on JoyFM's TopStory, "As of today, no organisation is signed onto the debt exchange programme. Those that have their pension funds involved have not signed up, but I'm not sure about the banks and others and haven't done any research on them.
The government, he continued, "has done a really massive mistake in the first place in introducing such a scheme that affects pension." Organized labour was awaiting this realisation from the government, he said.
The government "reneged on its primary obligation of engaging stakeholders to determine whether this is practical or not," he claimed, therefore labour unions did not sign up for the initiative because they expected them to modify the terms.
Recall that on December 5, 2022, the government unveiled a plan to restructure its debt.
The goal is to "ask holders of domestic debt to voluntarily swap about GH137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic," according to Ken Ofori-Atta.
Pension funds, banks, and insurance companies who own bonds will have to trade them in for ones that will pay no interest in 2019.
Only in 2024 will the new bonds start to pay interest, which will be 10% for the duration of their term. The first bonds only reach maturity in 2027 due to the extension of maturity dates.
The scheme has consistently been opposed by labour unions, who term it "draconian" and say it will negatively impact their pension funds.
In that sense, Organized Labor has announced an indefinite strike that will begin on December 27, 2022, because the government has not exempted them from the exchange programme.
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