The Chamber of Corporate Trustees has rejected the Debt Exchange Programme announced by the government.
In a statement, the Chamber said accepting the programme will be injurious to the interest of contributors to pension schemes.
The statement signed by Thomas Kwesi Esso also advised pension providers and administrators to engage further with the government for an improvement to the terms of the restructuring.
According to the Chamber, the proposal put forth by the Finance Minister, Ken Ofori-Atta is “inferior to market expectations and will destroy the savings of Ghanaians and further undermine market confidence”.
Below is the statement:
On 30th October 2022, The President of Ghana Nana Addo Dankwa Akuffo Addo addressed the nation and assured all Ghanaians that “there would be no haircuts on pension funds”.
A few weeks after this announcement, we are all witnessing, rather surprisingly, a major U-turn from that position.
We have carefully analyzed the announcement by the Minister of Finance on the Debt Exchange Program and are of the opinion that it is injurious to the interest of contributors to pension schemes.
The Pensions Chamber would like to assure contributors to pension schemes that the industry has not agreed to the debt exchange programme proposed by the Ministry of Finance.
As Trustees, we hold a fiduciary responsibility and are enjoined to seek the best interest of contributors at all times.
We encourage all contributors to pension schemes to seek further information from their pension providers/administrators as we engage further with the government for an improvement to the terms of the restructuring.
We recognize that inflation has caused significant harm to pension fund assets this year and that there is an urgent need to reduce the Government debt burden and restore macroeconomic stability. That should however not be done to the detriment of contributors to pension schemes.
We share in Government’s call for burden sharing, but that should be done in the spirit of fairness to ensure a win-win outcome to all stakeholders.
The proposal as put forth by the Minister of Finance is inferior to market expectations and will destroy the savings of Ghanaians and further undermine market confidence.
This is why we reject it outright. We indulge contributors to pension funds and actors in the pensions industry to remain calm as we seek the best outcome in our negotiations with the Ministry of Finance.
We will duly inform members of the outcome of our deliberations.