Debt Exchange Programme: New Legal Clause for Individual Bondholders "Dangerous" - Senyo Hosi 'Cries'

Convener of the Individual Bondholders Forum, Senyo Hosi has raised an alarm over a new clause introduced in the Domestic Debt Exchange Programme (DDEP) announced by the Finance Minister, Ken Ofori-Atta.

The Minister of Finance, Ken Ofori-Atta, has called on eligible individual bondholders to voluntarily tender their holdings and participate fully in the DDEP in order to ensure the success of the government’s debt operation.

Ken Ofori-Atta speaking on amendments to the framework of the DDEP said time is of the essence, and that further setbacks could put severe strain and stress on the economy.

However, according to Senyo Hosi, the recent amendment to the agreement between government and the individual bondholders will rather harm them in the long run.

Senyo Hosi told Kwami Sefa Kayi in an interview on Peace FM's Morning show 'Kokrokoo', Tuesday that, unlike the old clause which says you can take legal action if the government fails to pay back the money, the new clause is silent on that.

" . . unfortunately, there's no safety net for us . . . there's a new addition but it's still not helpful. He's added new legal clauses which are quite dangerous. With the old agreement, we can take government to court when they default in payment and when we win the case, a government asset can be used to pay in a form of collateral but all those ones have been removed; they are no longer part of this new contract.

"currently, with this new contract if government defaults you can't do anything about it. By 2025 Ofori-Atta will not be there and a new government can even decide not to pay us back or even decide to push it further. This is dangerous; we have no one to fight for us and it will become two six and loss," he bemoaned.

Listen to him in the video below