The Finance Minister, Ken Ofori-Atta appeared before Parliament on Thursday, February 16, 2023, to address the house on the government’s Domestic Debt Exchange programme.
This follows the Speaker of Parliament, Alban Bagbin’s directive by the Business Committee of the House to invite the Finance Minister to deliver a policy brief on the programme due to the ongoing involvement by pensioner bondholders at the Finance Ministry for an exemption from the programme.
At the meeting in Parliament on Thursday, the Speaker, Alban Bagbin directed Ken Ofori-Atta not to use pensioner monies as he believes that the government can find alternative solutions to the current economic crisis without touching pensioner funds. The former Nadowli Kaleo MP also declared that Parliament would oppose any attempt to integrate pensioner funds into the Domestic Debt Exchange Program (DDEP).
The government of Ghana announced the Domestic Debt Exchange Program on December 5th, 2022. This program invites citizens to voluntarily exchange approximately GHS 137 billion in domestic notes and bonds, including Energy Sector Levy Act (E.S.L.A.) and Daakye bonds, for a package of new bonds that the government will issue. All Treasury Bills, as well as individual (natural person) notes and bonds, are not included in the exchange.
Why the DDEP Should be Scrapped Off
Pensioners in Ghana earn very meagre benefits. After working for so many years of their lives, what they receive after retirement is nothing to write home about. Many of them still have to depend on their children to take care of them. Because of their old age, they are prone to several diseases including diabetes and hypertension and they spend most of their money buying medications to treat their illness.
Currently, the highest-paid pensioner will receive GHS 169,725.89 while the lowest earner will receive GHS 430.58. This comes after a 25% increment of monthly pensions for 2023 by the Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), The increment is still insufficient to sustain these pensioners, the matter is therefore a cause of concern to them.
Meanwhile, the Finance Minister stated that all retirees who did not exchange their old bonds for new ones as required have been exempted from the scheme. He urged the pensioners not to worry as he had officially written to the bondholders of pensioners who did not sign up for the programme to inform them that they are absolved from the programme. The government must show empathy towards these poor pensioners, their monies should be the last to be touched. Of course, the government does not feel their pain because they have never been in this position. Exempting individual bondholders from the DDEP is not enough, the programme must be scrapped completely.
Priscilla Fumadorh
Priscilla is an entrepreneur and a creative communicator who loves to communicate through writing. She is passionate about national economic issues and does not miss a chance to offer her opinions on them for the good of the country.
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