Dr. Mohammed Amin Adam, Minister of Finance
A group of pensioner Eurobond holders in Ghana has expressed profound disappointment and frustration over government’s Eurobond debt restructuring plan, following recent remarks by the finance minister.
The pensioners, feeling excluded from key negotiations, voiced their concerns after the Minister announced that Eurobond investors had forgiven $5 billion of Ghana’s debt.
The pensioners argue that while negotiations have focused on international and commercial bondholders, they have been left out of discussions, despite being significantly impacted by the restructuring.
They contend that unlike larger institutional investors, they cannot bear the severe financial losses imposed by the government’s current debt restructuring plan.
The restructuring involves a 37 per cent haircut, reduced interest rates, and extended maturity dates that stretch up to a decade. For the pensioners, these measures are devastating.
The bonds, which they had relied upon for financial security during their retirement, are now at risk, particularly affecting their ability to cover essential expenses such as medical care.
“We, the affected pensioners, write to express our deep disappointment and frustration with this turn of events,” the group said in a statement.
It continued that: “At our age, and being on retirement, the 37 per cent haircut, reduced interest rates, and longer tenor will affect us adversely, resulting in significant financial losses which we can hardly afford.”
For the past two years, these pensioners have endured zero interest payments on their bonds, exacerbating their financial hardship.
Despite multiple letters and appeals to the Finance Ministry, they have yet to receive a response. Now, they are pleading for an exemption from the Eurobond restructuring plan, citing their vulnerability as retirees.
Among their key requests are an exemption from the Eurobond restructuring for pensioners and other vulnerable groups and exploration of alternative solutions that protect their financial stability.
The pensioners, though a small group, stress that their plea is reasonable given their limited resources and the harsh terms of the restructuring.
They are urging the government to reconsider its stance and adopt a fairer approach that does not further compromise their financial wellbeing.
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