The Chamber of Corporate Trustees and the leadership of Organized Labor have both expressed their agreement with the provisions of the Alternative Offer for Pension Funds and urged members to take part on the recommendation of their boards.
The two organizations noted in separate press releases that the choice was made after careful consideration of the offer.
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“It was concluded that the terms stated in the Alternative Offer is better than the initial offer Organised Labour rejected in December 2022,” the Organised labour said in its statement signed by its Secretary General, Dr Yaw Baah.
The Alternative Offer’s guarantee that there will be no loss in patrimonial value is another factor that both parties appreciate.
Additionally, there is a guarantee that coupons and maturities will be paid on schedule, the bonds can be actively traded on the secondary bond market, and they have value.
“In addition to these, we also hope any restructuring of bonds held by pension schemes will contribute to the recovery of the Ghanaian economy,” said the Chamber of Corporate Trustees in a statement signed by Thomas Kwesi Esso, Executive Secretary.
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The boards of trustees of various pension funds have been urged by organized labor to evaluate the Alternative Offer on their own and take part in the exchange in the members’ best interests.
In order to guarantee that the government does not fall behind on the payment of interest and principal when it becomes due, it stated that it will rigorously monitor the implementation of the Exchange Memorandum’s stipulations.
“In other words, Organised Labour will not tolerate default. In the event that government fails to implement the provisions as stated in the Exchange Memorandum Organised Labour will advise itself” it added.
The chamber, on the other hand, has advised pension funds to call emergency Board of Trustees meetings so that appropriate decisions may be made and inclusivity is promoted.
On July 31, 2023, the government stated that the next stage of its Domestic Debt Exchange Programme (DDEP) would involve the restructuring of 31 billion pension funds.
The exercise will have an impact on the Daakye Trust Plc and E.S.L.A. Plc, according to the Ministry of Finance.
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