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Pensions Chamber rejects debt restructuring programme

The Chamber of Corporate Trustees has vowed to reject the debt exchange programme announced by the Ministry of Finance in its current form.

The Chamber has since assured its members it will directly engage other stakeholders and government for a possible review for mutual benefit to reduce the burden government intends to pass to investors.

It explains that the proposal by the Minister of Finance, Ken Ofori-Atta, is inferior to market expectations and puts savings of Ghanaians at stake.

“We have carefully analysed the announcement by the Minister of Finance on the Debt Exchange Programme and are of the opinion that it is injurious to the interest of contributors to pension schemes”, it said in a statement.

“The proposal as put forth by the Minister of Finance is inferior to market expectation and will destroy the savings of Ghanaians and further undermine market confidence. This is why we reject it outright”, it explained.

It assured 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”, it stressed.

It further stated that though it recognises 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 chamber added.

It called for calm and assured contributors to pension funds, actors in the pensions industry among others that it will “seek the best outcome in negotiations with the Ministry of Finance”.
“We will duly inform members of the outcome of our deliberations”, it concluded.

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