NPP was going to lose 2024 miserably because of individual bondholders – Kennedy Agyapong

NPP will lose 2024 due to having individual bonds – Kennedy Agyapong

The New Patriotic Party (NPP) will be badly defeated in the 2024 general elections because of the inclusion of individual bondholders in the Domestic Debt Exchange programme, Assin Central MP Kennedy Agyapong has said.

Speaking on the Good Evening Ghana program on Tuesday, January 31, he said, “I just read this evening that now they will not touch individual bondholders, thank God, otherwise we will lose a lot. It is good that the Minister of Finance has make a U-Turn. What is happening in the world is not voting for the NPP. The unfortunate thing for the NDC is that they have been in power before and were not good managers. That is why you need a leader like Kennedy Agyapong.”

The government has extended the deadline of the Domestic Debt Exchange Program (DDEP) until February 7, 2023.

The Ministry of Finance said in a statement after a meeting with stakeholders that “based on engagement with the representative group of individual bondholders, the following has been offered and will be part of the new Exchange Memorandum:

a. Affirmation that all individual bondholders are free not to participate;

b. However, after the successful DDEP there will be very few ‘old bonds’ in circulation, and the possibility of limiting its tradability;

c. In this regard, the Government is pleased to provide the following alternative offers to encourage all individual bondholders to participate in the Exchange:
i. All individual bondholders under the age of 59 will be offered instruments with a maximum life of 5 years, instead of 12 years, and a coupon rate of 10%;
ii. All pensioners (including those retiring in 2023) will be offered instruments with a maximum life of 5 years, instead of 12 years, and a coupon rate of 15%.

Also, he said discussions are being completed with Organized Labor and Fund Pension Trustees, in a separate arrangement in line with the MoU with Organized Labor on December 22, the end of the year and in line with the government’s Debt Management Program.

“With this, the Government encourages all stakeholders to participate in the DDEP, an important step towards achieving debt sustainability targets and restoring macroeconomic stability and economic growth.

“The development requires a final extension from January 31, 2023, to Tuesday, February 7, 2023, and the new settlement date is Tuesday, February 14, 2023, which will be confirmed through a new Exchange Memorandum,” added the Minister of Finance.

The ministry thanked the various stakeholders since the inception of the DDEP, which it said enabled it to make tremendous progress.

“All bondholders are encouraged to initiate all administrative processes towards participation in the Exchange, in accordance with the agreement reached,” said the Minister.

By Laud Nartey|3news.com|Ghana

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