A voluntary association of bondholders called the Ghana Individual Bondholders Forum (IBF) has asked individual bondholders to refuse and abstain from meeting the deadline established by the Domestic Debt Exchange (DDE) scheme.
It would prefer that they support the IBF's efforts.
It also asked indirect bondholders (investors in mutual funds, cash trusts, and balance funds) to notify their fund managers not to accept the DDE in a statement signed by Senyo Hosi, the immediately previous Chief Executive of the Chamber of Bulk Oil Distribution Companies.
In order to find an effective solution to the emerging impasse and the rapidly dwindling confidence in the Ghanaian economy, it encouraged government to open a channel of communication for an expedient, frank, transparent, and sincere debate on the DDE with the IBF.
The DDE plan, it continued, "is likely to have an impact on the medium- to long-term prospect and outlook of the domestic investment culture in Ghana, and we call on government to show the necessary sensitivity to enable a constructive conclusion in the best interest of everybody."
Therefore, it urged labour unions to join them in the battle to protect the hard-earned savings invested by Ghanaians, including their members, adding that they "also look forward to cooperating with likeminded organisations."
According to a government announcement, individual bondholders participating in the DDE programme must agree to a "voluntary" agreement to exchange their domestic bonds for new benchmark bonds.
According to IBF, "this system irrevocably destroys the wealth and livelihoods of direct and indirect individual bondholders, whose sole transgression has been to trust their government. This is coupled with a deadline that forces holders to choose between accepting the government's offer and running the danger of exorbitant losses.
The IBF invests in local cedi bonds, local US dollar bonds, ESLA bonds, daakye bonds, Ghana eurobonds, and collective investment schemes issued by the government of Ghana.
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