Ghana debt swap deal 'good for you', finance minister tells retirees

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Ghana indebtedness switch woody 'good for you', finance curate tells retirees © Reuters. FILE PHOTO: Ghana's Finance Minister Ken Ofori-Atta speaks during a news convention successful Accra, Ghana December 13, 2022. REUTERS/Cooper Inveen/File Photo

By Christian Akorlie

ACCRA (Reuters) -Ghana's finance curate told a group of protesting retiree bondholders connected Monday they were being a offered a bully deal, arsenic nan authorities of nan struggling West African federation pushes to get a home indebtedness speech complete nan statement by Tuesday.

Ghana launched a indebtedness switch scheme successful December arsenic portion of attempts to reside a spiralling economical crisis, but it has struggled to person bondholders to register, successful portion owed to a deficiency of clarity complete its position and concerns astir profitability.

Ken Ofori-Atta told nan group of over-60s protesting nan indebtedness speech extracurricular nan finance ministry that nan five-year maturity connected connection was favourable fixed a 3rd of them held instruments pinch maturities of much than 12 years, contempt an liking complaint trim to 15% from an mean of 18.5%.

Those beneath nan property of 59 are being offered a 10% coupon rate, according to a authorities archive past month.

"Look into your bosom and inquire whether what has been offered is truthful injurious versus your publication to our economy," Ofori-Atta told 5 of nan protesters, aft a larger group had near their earlier demonstration.

"Hand connected bosom I consciousness (the woody offered) is bully for you and bully for nan nation."

The West African federation has a staff-level statement pinch nan International Monetary Fund for a $3 cardinal rescue package that will only beryllium approved if it undergoes a broad indebtedness restructuring.

Ghana exempted pension costs from nan broader indebtedness speech successful precocious December aft wide protest, contingent connected labour groups agreeing an replacement solution pinch nan government.

The protesting retirees said they besides wanted to beryllium near retired of nan indebtedness speech altogether.

"The curate has said they want 80% (of home bonds to beryllium exchanged) to go successful," said Adu Anane Antwi, convener of nan Pensioner Bondholders Forum, which says it has 450 members.

"We deliberation if pensioners are near retired of nan programme they will still get their 80%."

Ofori-Atta said he expected "full tendering" from banks and different financial institutions that clasp Ghana's home bonds erstwhile nan programme closes connected Feb. 7.

($1 = 12.0000 Ghanian cedi)