On January 16, 2023, the Pensioner Bondholders Forum in Ghana announced plans to picket at the Ministry of Finance on January 23, 2023, unless the government exempts pensioners from the controversial Domestic Debt Exchange Programme (DDEP). The Forum’s threat comes as a response to what they describe as a lack of engagement from authorities, raising concerns about the financial security of retirees.
A Call for Exemption from the DDEP
The Pensioner Bondholders Forum, led by Convener Dr. Adu A. Antwi, has been vocal in its opposition to the inclusion of pensioners’ bonds in the DDEP. During a press briefing in Accra, Dr. Antwi revealed that the Forum had formally petitioned Finance Minister Ken Ofori-Atta on January 13, 2023, requesting the exclusion of pensioners from the programme. “We are not tendering in our bonds,” Antwi firmly stated, emphasizing the group’s resolve to protect their investments. The Forum also sought a meeting with the minister to discuss their concerns but has yet to receive a response.
The DDEP, launched by the government in December 2022, invites bondholders to voluntarily exchange approximately GH¢137 billion in domestic notes and bonds, including ESLA and Daakye bonds, for new bonds maturing in 2027, 2029, 2032, and 2037. The new bonds come with a zero percent coupon rate in 2023, rising to five percent in 2024 and ten percent from 2025 until maturity, with semi-annual payments. For pensioners, who rely heavily on these investments for their livelihood, the terms are seen as potentially devastating.
Engaging Stakeholders and Preparing for Action
In addition to petitioning the Finance Minister, the Forum has reached out to key stakeholders across Ghana to garner support. Dr. Antwi noted that letters were sent to the Speaker of Parliament, the Council of State, the National House of Chiefs, the Christian Council of Ghana, the Office of the Chief Imam, the National Peace Council, and the Catholic Bishops’ Conference to highlight their grievances. These efforts reflect the Forum’s determination to rally broad support for their cause.
To prepare for the planned picket, the Forum has notified the District Commander of the Ghana Police Service in Accra, ensuring compliance with legal requirements for public demonstrations. Dr. Antwi warned that failure to exempt pensioners from the DDEP could have serious consequences for their financial stability and well-being, underscoring the urgency of their demands.
Government Extends DDEP Deadline
In a statement released on January 16, 2023, the Ministry of Finance announced an extension of the DDEP deadline from January 16 to January 31, 2023. The ministry cited the need for further stakeholder engagement with institutional and individual investors to build consensus for Ghana’s economic recovery. While this extension provides a brief reprieve, it has not addressed the specific concerns of the Pensioner Bondholders Forum, leaving their planned protest on the horizon.
A Broader Context of Economic Strain
The DDEP is part of Ghana’s broader strategy to address economic challenges, including high public debt and fiscal constraints. However, the inclusion of pensioners’ bonds has sparked significant backlash, as retirees argue that their financial security is at risk. The Forum’s stance reflects a growing tension between government policies and the needs of vulnerable groups, with pensioners advocating for protection from measures that could erode their savings.
As the January 31 deadline approaches, the Pensioner Bondholders Forum remains steadfast in its demand for exemption. The planned picket at the Ministry of Finance signals their readiness to escalate their advocacy, urging the government to prioritize the welfare of retirees in its economic recovery plans.
