Organised Labour says it stands by the agreement reached with government to exempt pension funds from the Domestic Debt Exchange Programme (DDEP).
It will thus not participate, nor permit the inclusion of any of its Pension Schemes in any Domestic Exchange Programme, according to a resolution passed by Organised Labour and contained in a statement issued Wednesday afternoon.
A press release issued at the end of a meeting held at the TUC Hall on Wednesday February 1, 2023 by Organised Labour, referred to an agreement between government and Organised Labour on Thursday December 2022, which meeting concluded with the position that “Government has decided to grant exemption to all pension funds in the DDEP.”
According to Organised Labour, “by this, Organised Labour and all our pension schemes are not participating in any DDEP as per the exemption from government.”
The release further stated that, “any contrary communication or position is alien to us and should dismissed by all well meaning Ghanaians . Any attempt to go contrary to this agreement will be fiercely resisted by Organised Labour.”
Organised labour said the Finance Minister, Ken Ofori-Atta and Minister for Employment and Labour Relations, Ignatius Baffour-Awuah, signed the said agreement on behalf of the Government while Dr. Anthony Yaw Baah, Secretary General of TUC, signed on behalf of Organised Labour.
Government on Tuesday and for the fourth time extended the deadline for its DDEP to February 7, 2023 with a settlement date fixed at February 14, 2023.
A press release issued by the Ministry of Finance outlined some enhanced offers for individual bondholders contained in what “will form part of the new Exchange Memorandum.”
The Ministry in its statement affirmed that “all individual bondholders are free not to participate.”
It said discussions were being finalised with Organized Labour and Pension Fund Trustees, on a separate arrangement in accordance with the Memorandum of Understanding signed with Organized Labour on December 22, 2022, and in line with government’s debt management Programme.
The statement however cautioned that upon a successful DDEP there would be very few of the ‘old bonds’ in circulation, adding “ and likely limit its tradability.”
Government said it had decided that all individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 10% coupon rate
Additionally, the Ministry promised all retirees (including those retiring in 2023) instruments with a maximum maturity of 5 years, instead of 12 years, and a 15% coupon rate.