The debt exchange program proposed by the government is being rejected by the Ghana Registered Nurses and Midwives Association (GRNMA). According to the Association, it is unreasonable for the government to prevent retirees from accessing their tier 3 funds after waiting 5 to 15 years for their investments to mature.
The GRNMA referred to the debt swap program as unfair in a statement signed by its president, Perpetual Ofori Ampofo, because it would put the bulk of the burden of the government’s budgetary irresponsibility on retirees.
The proposed debt swap program, which was revealed by the minister of finance on December 5, 2022, has left the leadership of the Ghana Registered Nurses and Midwives Association (GRNMA) shocked and disappointed. “It is ridiculous that a government that projects an inflation rate of 18% in 2023 is considering zero interest for pension funds of low-income, law-abiding residents throughout the same time frame.”
On Monday, December 5, 2022, the government officially inaugurated the Debt Exchange Program to lessen the nation’s debt load. Ken Ofori-Atta, the minister of finance, made the following remarks when introducing the program: “Under the domestic bonds exchange programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.
“The annual coupon on all these bonds will be set at zero percent in 2023, 5 percent in 2024 and 10 percent from 2025 until maturity… In line with this, treasury bills are completely exempted, and all holders will be paid the full value of their investments on maturity. There will be no haircuts on the principal of bonds, and individual holders of bonds will also not be affected.” the Finance Minister, Ken Ofori-Atta, in a public address on Sunday, December 4, 2022.
