Sunday , 29 January 2023

Withdraw inclusion of pension funds from debt exchange programme – Nurses and Midwives to government 

Some nurses and midwives who partook in the training in Kumasi on Saturday [Source: Graphic Online]

The Ghana Registered Nurses and Midwives Association (GRNMA) says it is opposed to the government’s debt exchange programme.

According to the Association, the move is unacceptable. 

To the GRNMA, this means denial of pensioners’ access to their tier 3 funds after waiting for 5-15 for them to mature.

Withdraw inclusion of pension funds from debt exchange programme - Nurses and Midwives to government 
Excerpts of the statement from the group

This was contained in a press issued on Monday and signed by its president, Perpetual Ofori Ampofo. 

The group insisted that the debt exchange program is unfair since their pensioners will bear the brunt of the government’s fiscal irresponsibility.

Withdraw inclusion of pension funds from debt exchange programme - Nurses and Midwives to government 

“The leadership of the Ghana Registered Nurses and Midwives Association (GRNMA) wishes to register its dismay and disappointment at the proposed debt exchange programme as announced by the Minister of Finance on December 5, 2022.”

The statement added that “it is unacceptable that a government that budgets 18% inflation in 2023 will consider zero rate interest for pension funds of poor, hardworking, law-abiding citizens within the same period.”

Why is the group aggrieved?

Finance Minister, Ken Ofori-Atta on Sunday, December 4, announced the government’s domestic debt exchange programme.

These measures include some exemptions and external debt restructuring parameters that will be implemented.

Per his release, treasury bills and individual bondholders will not be affected by this exercise.

However, domestic bondholders will be compelled to exchange their instruments for new ones. 

“Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037. 

“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity. 

“Coupon payments will be semi-annual,” the Minister said.

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