Senyo Hosi, a Ghanaian businessman, revealed that the Akufo-Addo administration is subtly shifting Ghana’s debts to upcoming administrations.
He claimed that the New Patriotic Party (NPP) government’s domestic debt exchange program is pushing the debt onto future generations.
Senyo Hosi said this while appearing on the Business Focus with Paa Kwasi Asare on TV3, “You actually have a government now who is deferring a lot of liabilities on pensions to a later time, to a future government.”
The government is considering a new debt exchange program that it refers to as a “Proposed Alternative Offer for Pension Funds.”
The Board of Trustees of Pension Funds was presented with a proposal by the Ministry of Finance earlier this week to include it in the debt exchange program.
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The proposal has been “crafted to facilitate the execution of the MoU, addressing the Financial Needs of the Government while maintaining the Value of the Pension Funds,” according to the sector Minister Ken Ofori-Atta.
“The proposed offer entails exchanging your current holdings of Treasury Bonds, ESLA bonds and Daakye Bonds for a menu of the currently outstanding New Bonds (issued in February 2023 and maturing in 2027 and 2028 respectively. New Bond 2027 and New Bond 2028 featuring an average coupon of 8.4 % with a ratio of 1.15x, thus entailing an increase in patrimonial value.”
“This complemented by an additional cash payment of 10% (strip coupon). The stream of coupons to be received as part of this proposal will therefore be 21% compared to the current 18.5% of the outstanding of old bonds.”
He added, “In 2023 and 2024, both instruments will pay 5% of the coupon in cash, and the remaining amount will be capitalized into the nominal amount of the two bonds in order to comply with the cash constraints and the macro-framework defined under the programme.
