Coalition of Individual Bondholders demands payment of principals and coupons by Friday

The Coalition of Individual Bondholders Group, comprising the Ghana Individual Bondholders’ Forum (IBF) and the Individual Bondholders Association of Ghana (IBHAG), has issued a strong demand for the payment of their outstanding principals and matured coupons by Friday, June 30.

In a statement, the coalition expressed deep concern over the government’s failure to honour a previously signed Memorandum of Understanding (MoU) that aimed to ensure timely payments.

Despite the existence of the agreement, the government has yet to fulfil its obligations, leading to frustration and financial strain for the bondholders.

The coalition emphasized the urgency of the matter and highlighted the detrimental impact of delayed payments on individual bondholders.

With their investment tied up and the government’s failure to fulfil its financial commitments, many bondholders are facing significant challenges and hardships.

Below is the statement by the Coalition of Individual Bondholders

We are utterly disturbed by the failure of the Ministry to commence implementation of the Memorandum of Understanding dated 16th May 2023 and executed between your office and the Coalition of Individual Bondholders (CIBG) on the 16th of June, 2023.

It has been 42 days since reaching the understanding and 11 days since the signing with no implementation undertaken.

We do not want to believe that the invitation to dialogue was a futile action and a time-buying gimmick but a conscious effort by both parties to ensure there is some relief to bondholders.

Payments of Bonds have been in default for over 100 days plunging people into a lot of hardship, discomfort and untold distress which we want to bring to an end. We expect as a matter of urgency, MOF to as agreed;

1. Make full payment of all outstanding Principals and coupons by COB Friday, 30th June 2023.

2. FastTrack the Memoranda on Treasury bill conversion (June and beyond maturing bonds) for consideration of our membership by COB Friday, 30th June 2023.

Each day of refusal to pay the matured coupons and principals represents:

• Critical health care and medication denied and serious injury to health of our membership and their dependents including their aged parents.

• Inability to pay school fees and education denied children

• Denial of such basic needs as food and shelter – the plight of many of our members

It will be insensitive for the government to renege on its promises again to our membership as this will trigger myriads of actions we have tried so much to control. We have had our fair share of the burden with Principals locked for over 4 months losing value with each passing day.

It is the turn of the government to demonstrate its sense of responsibility, fairness and sensitivity to its citizens who opted to trust it with their hard-earned savings.