Senyo Hosi, the convener of the Ghana Individual Bondholders Forum, has refuted accusations that individual bondholders' rejection of the domestic debt exchange scheme would cause the nation great economic suffering and would even render their bonds worthless.
He believes that data from the Finance Ministry shows that such allegations are untrue and just intended to incite fear and panic in order to get bondholders to sign up for the ongoing debt swap scheme.
He discussed why joining the debt swap scheme would render one's bonds possibly worthless and irredeemable on JoyNews' PM Express.
Please don't believe anyone who tells you otherwise, especially if you're a single bondholder. They are dishonest, illiterate, and unqualified. 1+1 cannot equal 3. One and a half is not possible. This one is just arithmetic, science, money, economics, and again, common sense, therefore it's not Senyo," he responded.
His remarks come after a serious appeal by Gabby Otchere-Darko, a pillar of the NPP, on Sunday. She stated that while the parameters of the debt exchange scheme would have an impact on certain bondholders, it is a vital move that must be taken to save the economy.
"Ghana is in a really challenging situation. It creates a genuine and significant risk that is worse than what we saw when resistance to the E-Levy was successful in upending an already precarious macroeconomic scenario starting in 2021, according to his tweet.
What will have been accomplished if the opposition to it that makes no concessions wins? A default on the national debt might result.
What happens to your bonds' value after that? possibly useless Low participation puts our ability to address the economic crisis and difficulties at jeopardy, he continued.
Senyo Hosi highlighted, however, that bondholders were far safer sticking onto their present bonds than signing up for the government's new bonds under the debt swap scheme.
"With bonds right now, your money is kept since that's what you expected," he added. You requested 16%, and you will receive it with no issues. Second, the source of the income is secured if you purchase an ESLA or a Daakye bond.
Even more so than Ghanaian law, English law is used to regulate the ESLA. Every time you buy gas, money comes in to cover your ESLA. You have already paid taxes to settle the bond.
He continued by explaining that, under the debt exchange scheme, the government would exchange its existing bonds for new ones, while bondholders who have not yet signed have the option to sue the government and get compensation from the state if it defaults on payments.
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