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Akufo-Addo’s government is pushing Ghana’s debt to future administrations - Senyo Hosi

Ghanaian businessman, Senyo Hosi has disclosed that the current Akufo-Addo administration is stylishly pushing Ghana’s debts to future administrations.

Akufo-Addo is pushing Ghana’s debt to future administrations - Senyo Hosi

He said the domestic debt exchange programme by the New Patriotic Party (NPP) government is pushing the debt for future generations.

Speaking on the Business Focus with Paa Kwasi Asare on TV3, he said “You actually have a government now who is deffering a lot of liabilities on pensions to a later time, to a future government.”

The government is considering what it calls ‘Proposed Alternative Offer for Pension Funds’ but many consider this a new debt exchange programme.

Earlier this week, the Ministry of Finance proposed to the Board of Trustees of Pension Funds for it to be included in the debt exchange programme.

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The sector Minister Ken Ofori-Atta explained that the proposal has been “crafted to facilitate the execution of the MoU, addressing the Government financial needs while maintaining the value of the pension funds.”

“The proposed offer entails exchanging your current holdings of Treasury Bonds, ESLA bonds and Daakye Bonds for a menu of the currently outstanding New Bonds (issued in February 2023 and maturing in 2027 and 2028 respectively. New Bond 2027 and New Bond 2028 featuring an average coupon of 8.4 % with a ratio of 1.15x, thus entailing an increase in patrimonial value.”

“This complemented by an additional cash payment of 10% (strip coupon). The stream of coupons to be received as part of this proposal will therefore be 21% compared to the current 18.5% of the outstanding of old bonds.”

He further indicated that “in 2023 and 2024, both instruments will pay 5% coupon in cash and the remainder will be capitalized into the nominal amount of the two bonds in order to comply with the cash constraints and the macro-framework defined under the programme.

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