DDEP: There is huge trust deficit – Joe Jackson

DDEP: There is a huge trust deficit – Joe Jackson

People don’t trust the government very much when it comes to the Domestic Debt Exchange Program (DDEP) so pensioners are picketing unrelated to it, said Finance analyst, Mr. Joe Jcakson.

Mr. Jackson stated on TV3’s Ghana Tonight program on Wednesday February 15 that there have been too many U-Turns by the government.

In addition, he added, the government is asking the public to make sacrifices if they have not done so by cutting costs.

These factors, he said, create room for mistrust.

“There’s a big trust deficit, there’s been a lot of Utunr, the government isn’t involved enough, the government isn’t cutting costs,” Mr Jackson said.

Also speaking at the same event, the former Director General of the Securities and Exchange Commission (SEC) Dr. Adu Anane Antwi who is one of the pensioners who asked to be released from the program said that they are fighting for the Exemption of Issuers and are not free.

He states that the two are completely different.

“If you don’t understand the issues between the exempt and the issuer, you won’t understand what they’re doing,” he said.

He added, “No one is against us, we are fighting for the Issuer to be released and we have not got it.

“It’s a technical thing, even people in securities don’t know if they don’t do the analysis. We want to be in the exempt status of the issuer.

His comments came after Finance Minister Ken Ofori-Atta said there was no need to continue the picketing as it was included in the debt swap.

The minister said assurances have been given to address the issue.

“Indeed, there is no reason for us to sit here because the guarantee has been given on paper. I want to know what you fear or what you think will never happen.

“My problem is that now you have very little old bonds. This means, if there is a crisis, your ability to trade your paper is reduced. But that is the choice you make,” said Mr. Ofori-Atta on Wednesday.

The pensioners have been picketing the Ministry since Monday, February 6 to be released from the Programme.

The Government has extended the Exchange Settlement Date from February 14, 2023 which was previously announced to February 21 in the Domestic Debt Exchange Program (DDEP).

This is to provide sufficient time to complete the New Bonds in an efficient manner, a statement issued by the Ministry of Finance, Tuesday 14 February.

“To provide sufficient time to complete the New Bonds in an efficient manner, the Government has extended the Exchange Settlement Date from the previously announced 14 February 2023 to 21 February 2023”, the statement said.

The Ministry earlier thanked all the bondholders who voluntarily participated in the DDEP.

The program closed on Friday, February 10 after several deadlines.

The Minister of Finance, Ken Ofori-Atta, has targeted more than 80 percent participation amid agitations between individual bondholders and some Senior Citizens, who are seeking exemption from the Programme.

“The Government’s Domestic Debt Exchange Program (DDEP) closed on Friday, February 10, 2023 with the participation of more than 80% of eligible bonds,” revealed a statement issued by the Ministry of Finance on Tuesday, February 14.

“The government would like to thank the people of Ghana for their patience and support during this very difficult time.”

He said with the participation of voluntary bondholders after the closing of the Program on Friday, the country has come close to securing an additional credit facility (ECF) of $3 billion from the International Monetary Fund (IMF).

“The DDEP was implemented to help protect the economy and improve our capacity to effectively accommodate public debt.

“The alternative of not implementing the DDEP would be a serious disruption in the servicing of our national debt and exacerbate the current economic crisis.

“The government, therefore, is grateful for the overwhelming participation of all bondholders.

“Your support and contribution have brought your country closer to securing the IMF program.”

It asks individual bondholders, especially pensioners, who do not participate in the Program, to be sure that the coupon payments and the mature principal will be honored in accordance with the established rules.

By Laud Nartey|3news.com|Ghana

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