Good News for bondholders at last

• Mar 15, 2023

The Ministry of Finance has said the government is "pleased to announce that processes to settle payments on outstanding bonds commenced yesterday, 13th March 2023."

A statement from the ministry said on Tuesday, 14 March 2023: "The initial instruction covers coupon and principal payments on bonds that matured on 6th February 2023, and 13th February 2023."

It added: "Holders of the afore-listed bonds should, therefore, expect to receive their payments within the next 48 hours.”

The ministry also announced that payment dates for subsequent maturities will be communicated in due course, as processing continues.

The ministry's statement comes after some pensioner bondholders and other individual bondholder groups threaten various actions if their coupons were not paid as scheduled.

‘We don't've time to go to court, we'll picket MoF some more’ – Pension bondholders threaten

Pensioners who bought government bonds and have not been paid their coupons have threatened to picket the Ministry of Finance some more if they are not paid in 48 hours.

“We have our options, plenty of them, including the picketing, so, when it comes that we have to repeat, we’ll repeat”, the group’s convener Dr Adu Anane Antwi told Valentina Ofori-Afriyie on Class91.3FM’s mid-day news programme 12 Live.

Asked if the options included going to court, Dr Anane Antwi said: “No, we won’t go to court; we don’t have time to go to court.”

Responding to whether Ghanaians should expect more picketing from them, Dr Adu Anane Antwi said: “Yes, if that’s what the minister wants to see.”

A prominent member of that group is former Chief Justice Sophia Akuffo, who joined earlier picketings twice during the domestic debt restructuring programme.

Meanwhile, a group of individual bondholders has also expressed disappointment with the government’s failure to honour matured bonds for the third time as promised by the finance minister, Ken Ofori-Atta, on February 15th 2023.

The minister assured these bondholders who opted out of the government’s Domestic Debt Exchange Programme of its commitment to have their coupons paid to them after two previous failed dates.

The members have expressed disappointment in the government for failing to pay them on the matured date of Monday, 13 March 2023.

In a statement, the bondholders said: “At the close of business on 13th March 2023, the Ministry of Finance, led by Hon. Ken Ofori-Atta, has disregarded all the basic rules that have been established to protect the integrity of the local markets and maintain sovereign credibility for Ghana. It is most unfortunate that the ministry continues to have absolute disregard for its creditors, in this case, Individual bondholders, despite prior meetings held in which we stated the need for communication.”

They reiterated that “the coupon and principal payments due to Individual Bondholders who opted out of the Voluntary Domestic Debt Exchange programme have not been paid, despite written press releases confirming the resumption of payments on 13th March 2023.”

The bond holders also bemoaned that “the umbrella regulator of the Securities markets – Securities and Exchange Commission (SEC), Ghana – charged with a mandate to protect investors and market integrity have also maintained a loud silence throughout this period on the plight of Individual Bondholders.”

The group has issued a 48-hour ultimatum to the Ministry of Finance to honour its word to pay all matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana or they advise themselves.

Below are details of the statement:

JOINT PRESS RELEASE

RE: DOMESTIC DEBT EXCHANGE PROGRAMME (DDEP) UPDATES

1. Reference is made to the Press release from the Ministry of Finance (MOF/GA/PR/DDE.EXT.23/006) dated 14th February 2023 which states as follows in Clause 3: “The Government would like to reassure all individual bondholders who elected not to participate that your coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government fiscal commitments”.

2. 2. Reference is also made to the Press release from the Ministry of Finance (MOF/GA/PR/DDE.EXT.23/010) dated 27th February 2023 which states as follows in Clause ii: “…in fulfilment of the assurance given by Government to bondholders who did not tender, the Ministry is taking administrative steps to ensure that payments of coupons and principals of the old bonds resume by 13th March 2023”.

3. Reference is made to the Securities Industry Act, 2016 (Act 929) Part One Section 2 which states: “The object of the Commission is to regulate and promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected”.

4. We also refer to the Securities and Exchange Regulations, 2003 LI 1728 Section 60 (1) which states: “An Issuer that has its securities listed on a stock exchange shall comply with the disclosure requirements of that stock exchange”.

5. Regulation 51(2) of the Ghana Fixed Income Market regulations states as follows: “An issuer of admitted securities shall: (a) maintain high standards of disclosure. (b) fully disclose to the public, the information necessary to make informed investment decisions; (c) secure the immediate release of information, which may be reasonably expected to have a material effect on the market activity and price of its admitted securities. (d) ensure the maintenance of a fair and orderly market in its securities, and (e) ensure that all investors have simultaneous and equal access to the same information”. 6. 6. At the close of business on 13th March 2023, the Ministry of Finance, led by Hon. Ken Ofori-Atta, disregarded all the basic rules that have been established to protect the integrity of the local markets and maintain sovereign credibility for Ghana. It is most unfortunate that the ministry continues to have absolute disregard for its creditors, in this case, Individual bondholders, despite prior meetings held in which we stated the need for communication.

7. The coupon and principal payments due to Individual Bondholders who opted out of the Voluntary Domestic Debt Exchange programme have not been paid, despite written press releases confirming the resumption of payments on 13th March 2023

8. The umbrella regulator of the Securities markets – Securities and Exchange Commission (SEC), Ghana – charged with a mandate to protect investors and market integrity have also maintained a loud silence throughout this period on the plight of Individual Bondholders.

9. The Ghana Fixed Income Market of the Ghana Stock Exchange, where the old Government of Ghana bonds are listed and traded has also not enforced its basic rules of disclosure required by issuers. More loud silence. 10. The little confidence remaining in the markets as a result of assurances from the Ministry of Finance is fading away under the full watch of the very institutions set up to protect it.

11. Individual Bondholders, as was the case in the aftermath of the DDEP announcement, have been left to fight for themselves as the Government creates a full default on its obligations. Fight we will.

12. We are giving a 48-hour ultimatum to the Ministry of Finance to honour its word to pay all matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana.

13. We call on the Securities and Exchange Commission and the Ghana Stock Exchange to enforce the rules of full disclosure required by all issuers including the Government of Ghana.

14. We will fight to ensure the full payment of our monies and the preservation of our Securities Markets for the future generation.

15. Notice is duly served!