Ghana Federation of Labour against domestic debt exchange programme

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, Secretary General of the (GFL) has reiterated that Organized Labour, which comprises all registered trade unions and workers' associations, still stand by their position against the government's programme.

Mr Koomson, in an interview with the (GNA) , said organized labour has vehemently opposed the debt exchange programme.

He, therefore, called on the government to respect the position of labour unions to avoid any labour unrest in the country.

He stressed that the resolve to oppose it was because it would have adverse effects on workers and pensioners.

“Organized Labour vehemently opposed to government's announced of to satisfy the () conditions for a bailout from the self-inflicted economic mess,” he said.

The GFL Secretary General added that, “various workers' organizations have spontaneously reacted against this programme having considered the devastating consequences on workers' pensions, and other investments when implemented.”

According to him, the government had not demonstrated good faith in discussions with organized labour prior to opting for support in addressing 's economic crisis.

He said it was on record that the government never considered going to IMF as a progressive alternative to revive the ailing economy.

“The 13 affiliate unions of GFL were taken aback by the government reneging on its assurance in never to seek IMF assistance in dealing with Ghana's economic challenges,” he started.

The on December 04, 2022, announced its domestic debt restructuring programme; noting that “Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones.”

Also under the programme, existing domestic bonds as of December 1st, 2022, would be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

“The annual coupon on all these new bonds will be set at zero percent in , 5 percent in 2024 and 10 percent from 2025 until maturity. Coupon payments will be semi-annual.”

were, however, completely exempted and all holders will be paid the full value of their investments on maturity, according to the .

The Ministry also noted that there would be no haircut on the principals of bonds, while individual holders of bonds would not be affected.

Source: Laudia Sawer
Via: GNA

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