Individual bondholders stated that their holdings through collective investment schemes total approximately GHS15.5 billion, or about 11% of the eligible bonds and capitalized interest, during discussions with the technical committee established by the government to address issues surrounding the Domestic Debt Exchange Programme.
With the objective of 80% of qualifying bonds, the individual bondholders continued, Individual Bondholders are not a critical success factor for the viability of the DDE project, but their inclusion would have unimaginable effects.
Senyo Hosi’s Individual Bondholders Forum made recommendations to the Committee that included the government selling 17 troubled, bankrupt, and loss-making state-owned firms.
The Individual Bondholders Forum has insisted on the complete exclusion of its members from the Domestic Debt Exchange Programme, stating that their inclusion will destroy household confidence in Ghana’s financial system and securities market.
The Individual bondholders also suggested that the government review the Free SHS Programme to make it more efficient through effective targeting and allowing parents who can pay to do so.
According to the group, “beneficiaries should be students that patronize Senior High Schools in their communities whilst other students should pay for boarding.
However, the government can pay for students who do not have Senior Secondary schools in their communities.”
The group stated that divesting the 17 non-performing SOEs and reviewing the free SHS alone will provide the government with two billion cedis.
The group also urged the government to maintain the 2022 capital expenditure level by reducing the non–ABFA MDA and foreign finance Capex provisions by 50% which they claim will provide the 10.7 billion Ghana Cedis.
