Finance
TUC: Exempt pension funds from debt exchange to avoid strike

The Trades Union Congress (TUC) has given government one-week ultimatum to announce the exemption of pension funds from the Domestic Debt Exchange Programme.
According to the Union, failure to meet the deadline which expires on Monday, December 19, 2022 will force workers to embark on industrial action.
Secretary General of TUC, Dr Yaw Baah called on all workers to be ready to participate fully in any industrial action to protect pension funds.
IMF inspired policies and programmes
He warned that workers will no longer bear the consequences of any International Monetary Fund (IMF) inspired or IMF-sponsored policies and programmes.
He stated that government is responsible for all the consequences of its decisions, including the decision to seek IMF bailout.
TUC, affiliate Unions against pension funds being part of Debt Exchange
Dr Baah said TUC together with its affiliate Unions have decided that the pension funds of its members will not be part of the programme.
Negative impact of Debt Exchange on retirement income security
According to him, the decision was taken after thorough analysis of the programme which has led them to conclude that it will negatively affect the pension fund of its members and consequently, their retirement income security.
The TUC has thus demanded that government exempt all pension funds invested in government bonds from its Domestic Debt Exchange programme.
They also want government to within a week of their statement; make a public announcement to the effect that all pension funds, including Social Security and National Insurance Trust (SSNIT) Funds are exempted from the programme.
TUC opposed public sector hiring freeze
Touching on other policies the Ministry wants to implement, Dr Baah, aid, “the decision to implement a hiring freeze in the public sector is wrong.”
He said, “We had thought protecting employment would have been at the heart of the recovery process. Employment freeze in the public sector will be adding to the pain of Ghanaians, especially young graduates struggling to secure employment.”
Tax measures will hurt poor people
On taxation, the TUC is of the view that the decision to raise Value Added Tax (VAT) rate will by 2.5 percentage points; the maximum personal income tax margin from 30 to 355; and the removal of the Electronic Transactions Levy (E-Levy) threshold, will hurt poor people and workers on fixed and low incomes.
Downsizing of government
TUC therefore reiterated its demand for the immediate and radical downsizing of government, including a substantial reduction in the number of Ministries and ministerial portfolios.
Such a measure, the Union believes, “will assure the Good People of Ghana that government is doing its part to reduce expenditures.”
They further called on government to “substantially increase salaries for workers, especially those on the Single Spine Salary Structure,” has complete erosion of the purchasing power of workers, especially those in the public service, due to the surge in inflation.
They also called for salaries of public sector workers on the single spine structure to match salaries on the structures being implemented by the SOEs for their staff.
The COVID-19 pandemic, rising global food prices, rising crude oil & energy prices; and the Russia-Ukraine war adversely affected Ghana’s macroeconomy, with spillovers to the financial sector.
The combination of adverse external shocks had exposed Ghana to a surge in inflation, a large exchange rate depreciation and stress on the financing of the budget, which taken together have put our public debt on an unsustainable path.
Debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of GDP.
Debt Sustainability Analysis (DSA) had demonstrated that Ghana’s public debt was unsustainable, and that the government may not be able to fully service its debt down the road if no action is taken.
The DSA had demonstrated that Ghana is faced with a significant financing gap over the coming years revealing that public debt is unsustainable.
To address the ongoing economic crisis, the government had already requested financial support from the IMF.
GH₵137bn
In the Debt Exchange programme, government is targeting GH₵137 billion in domestic notes and bonds from domestic debt holders.
4 New Ghana bonds
Domestic debt operation involves an exchange for new Ghana bonds with a coupon that steps up to 10% as soon as 2025 (with a first interest payment in 2024) and longer average maturity.
Maturing dates for the new bonds
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.
Predetermined allocation ratios
Predetermined allocation ratios are 17% for the short bonds, 17% for the intermediate bond, 25% for the medium-term bond and 41% for the long-term bond.
Annual coupon rates
The annual coupon rates on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Coupon payments will be semi-annual.
Eligible holders, who deliver valid offers at or prior to the expiration date that are accepted by the country, will receive at the settlement date in exchange for their eligible bonds accepted, the same aggregate principal amount distributed across new bonds due dates.
Offers end on December 19
Offers may only be submitted starting from December 5, 2022, and ending at 4:00 p.m. (Greenwich Mean Time (GMT)) on December 19, 2022.
Sole discretion to extend expiration date
However, government may at its sole discretion extend the expiration date, including for one or more series of eligible bonds.
Only registered holders eligible
The invitation is available only to registered holders of eligible bonds that are not individual investors or that are otherwise authorised by the Government of Ghana, in its sole discretion, to participate in the Invitation.
Government said eligible holders tendering their eligible bonds pursuant to the invitation will receive new bonds of the country on the terms and subject to the conditions described in the Exchange Memorandum.
All offers irrevocable
All offers to exchange eligible bonds made by eligible holders are irrevocable and by tendering their eligible bonds, eligible holders represented and warrant.
Eligible bonds
Such eligible bonds constitute all the eligible bonds owned by them and consent to the blocking by the Central Securities Depository of any attempt to transfer them prior to the settlement date or the termination of the invitation.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
Ofori-Atta appeals to Parliament to approve revenue measures

Finance Minister Ken Ofori-Atta has informed parliament of his intention to present necessary fiscal adjustments to the house in august after the debt operation is completed.
Outstanding revenue mobilisation bills
Already, he said the Income Tax (Amendment) Bill, Excise Duty & Excise Tax Stamp (Amendment) Bills as well as the Growth and Sustainability Levy Bill, are outstanding in Parliament.
According to him, the consideration and approval of fiscal measures by Parliament are critical for recovery from the current economic crisis.
Facilitating IMF Board approval
The Minister therefore entreated Parliament to prioritise the approval of the outstanding revenue mobilisation bills to facilitate the Board Approval for International Monetary Fund (IMF) Programme staff level agreement by the end of March, 2023.
“We are still counting on you for the passage of all the outstanding revenue Bills which are necessary for effective Budget Implementation as well as boosting our efforts at increasing our Tax-to-GDP from less than 13% to the sub-Saharan average of 18,” he stated.
Expected impact of IMF Board approval
He is confident IMF Board approval will restore macro-economic stability, ensure debt sustainability as well as provide critical social protection for the benefit of Ghanaians.
Factors that impacted economy negatively
COVID-19, Russia-Ukraine war, soaring energy and food prices, higher interest rates, a strong dollar and a global slowdown negatively affected the economy.
Ghana seeking $3 billion loan
Ghana and the International Monetary Fund (IMF) have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.
But, the IMF has made it clear that the Board approval of the deal is contingent on a successful debt exchange programme.
Broader govt response strategy
Addressing Parliament on the ongoing debt restructuring efforts, Ofori-Atta explained that debt operations are a composite part of a broader government response strategy for addressing the current challenges.
While being optimistic about IMF programme to boost confidence in the economy, he emphasized that complementing it with enhanced domestic mobilisation efforts is critical.
4 out of 5 agreed Prior Actions in the Staff Level Agreement
The Finance Minister averred that the passage of the Bills will enable government to complete four out of five agreed Prior Actions in the Staff Level Agreement.
Agreed Prior Actions already implemented
He noted that tariff adjustment by the Public Utilities Regulatory Commission (PURC), Publication of the Auditor-General’s Report on COVID-19 Spending, and Onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF) and Road Fund on the Ghana integrated financial management information system (GIFMIS) have all been completed.
International and domestic bond markets are shut
Ofori-Atta reminded the legislators that the international and domestic bond markets are shut for the financing of government’s programmes, forcing government to rely on the Treasury Bills and concessional loans as the primary sources of financing for the 2023 fiscal year.
Therefore, he called on Parliament to support the government’s financing requests to ensure a smooth recovery from the economic challenges.
He thanked everyone who tendered and supported the Domestic Debt Exchange programme saying “It is a truly remarkable act of sacrifice in our nation’s history. We thank those who heeded our clarion call and took the selfless, patriotic decision to participate. Your names and deeds will never be forgotten. Your timely support is deeply appreciated,”.
He is confident that the programme government has set out for this year, supported by Parliament, will get Ghana out of the economic crisis that has hit the economy since Covid-19.
Inflation interest and exchange rates to stabilise
He hopes for stability in the exchange rates, inflation and interest rates, bringing businesses and families some respite.
Suspension of payments of interest on foreign debt
Government also announced a suspension of all debt service payments for certain categories of external debt, pending an orderly restructuring.
International bondholders
Ofori-Atta revealed that Ghana initiated discussions with representatives of international bondholders and their Advisors.
According to him, substantive discussions are due to start with them in the weeks to come.
G-20 Debt Treatment initiative
Ghana officially asked its bilateral creditors for a Debt Treatment initiative under the G-20 Common framework.
Negotiations with commercial creditors underway
The Finance minister said the process of negotiations have started in good faith with commercial creditors.
Ofori-Atta stated that two preliminary discussions and exchange of information have started on a good footing with representative committees and advisors.
Creditor Committee to assess Ghana’s request
According to him, the members have indicated their commitment to establish a Creditor Committee to assess Ghana’s request for debt treatment under the Common Framework by end February, 2023.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
IMF assigns resident financial supervision adviser to BoG

The International Monetary Fund (IMF) has assigned a Resident financial sector supervision adviser to the Bank of Ghana (BoG) to provide technical assistance and help build the capacity of the banking supervision function.
The appointment was at the request of Bank of Ghana with full funding from Switzerland’s State Secretariat for Economic Affairs (SECO).
Mr. Leonard Chumo, the Resident Adviser, started his assignment at the Bank of Ghana on February 6, 2023, and was expected to stay for three years.
A statement issued by BoG in Accra said the Adviser’s placement was a continuation of cooperation in this area between the Bank, the IMF and SECO, that started as early as in 2015 and had already seen the assignment of a previous Adviser until 2018.
It said achievements from the past collaborative efforts include the passage of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the development and issuance of the Corporate Governance Directive 2018, and the Capital Requirement Directive 2018.
Mr Chumo, brings first-hand knowledge of supervisory work from leading central banks as well as previous technical assistance experience in the Western Africa region.
The statement said among others, he would support the implementation of Pillar two and three of the Basel II/ III capital frameworks, as well as strengthen the Risk-Based Supervisory framework at the Bank of Ghana.
The Bank commended the management of SECO for the continued funding of Long-Term Technical Experts from the IMF to the Bank.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
Govt pledges to pay coupons, principals on all maturing bonds

Government has assured all bondholders, including those who self-exempted from the voluntary Domestic Debt Exchange Programme (DDEP) that it will honour all coupon payments and maturing principals when due.
Payment of coupons and principal for bonds that matured since February 6 to date (herein referred to as ‘Due Bonds’ remain outstanding.
Bondholders want government to make payments not later than Friday, February 17, 2023.
A statement issued by the Finance Ministry indicates that more than 80% bondholders participated in its $137 billion DDEP.
“The DDEP closed on Friday February 10, 2023, with over 80% participation of eligible bonds,” it said.
The Finance Ministry pledged to honour all coupon payments and maturing principals in addition to commitments to further streamline Government’s expenditures.
“We would like to stress that, all Individual bondholders, especially our Senior Citizens, should rest assured that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitments.
“The Government would like to reassure all individual bondholders who elected not to participate that your coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government fiscal commitments,” it added.
Government reiterated that the DDEP had been executed to help protect the economy and enhance Ghana’s capacity to service its public debts effectively, as its debt had become unsustainable.
The alternative for not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis.
It expressed gratitude to bondholders for the overwhelming participation, adding that their support and contributions had gotten Ghana much closer to securing the International Monetary Fund (IMF) programme.
There are fears that those who opt against signing up are not guaranteed market liquidity for the old bonds, because they are likely to become less tradeable on the secondary market compared with the new bonds.
On the other hand, individuals who sign up for the new bonds will have more certainty even in a changing economic landscape.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
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