The Government has not paid out matured coupons to investors who did not tender their bonds under the Domestic Debt Exchange Program, which has angered the Pensioner Bondholders Forum.
The government has now twice failed to honour coupons that became due between February 6 and February 20.
Dr. Adu Anane Antwi, convenor of pensioner bondholders, said in an interview with Citi News that it is the responsibility of the government to contact the groups with defaulting reasons.
“The financial markets depend on information and if the issuer is unable to pay, the issuer must come out and let the market know why. This is the second time the issuer has been unable to pay and expects people to demand answers. That is not how we should run our financial markets. The right thing the issuer must do is to make an announcement to calm investors. But there is no word. This market thrives on information, so they should tell us what is happening other than keeping information because that is not right.”
He added that his group would consult with the remaining individual bondholders to decide what to do next.
“Now, we are all a group whose bonds must be serviced because we were promised. Since we haven’t received any payment, we are going to meet to take a decision on what to do next”, Dr. Anane Antwi said.
The government broke its promise to pay the coupons that were due to mature on February 6–20, 2023, but it promised to start paying the principal and matured coupons on March 13 in the same year.
This came after the Domestic Debt Exchange Program’s conclusion (DDEP).
In light of this, the government stated among other things that “the Ministry is taking administrative steps to ensure that payments of coupons and principal of the old bonds resume by 13th March 2023,” fulfilling the assurance given by the government to bondholders who did not tender.
In a statement on February 27, 2023, the Finance Ministry explained that new bonds settled and listed will replace the existing benchmark bonds.
Pensioner Bondholders Forum, Individual Bondholders Association of Ghana, and Individual Bondholders Forum previously urged the Finance Ministry to demand payment of matured bonds that were not tendered under the DDEP.