Business General News

Convert ¢926m principal payments of bonds to T-Bills – IBF to government

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The Individual Bondholders Forum (IBF) is proposing to government to convert the ¢926 million principal payments of matured bonds into Treasury bills at the prevailing market conditions, if it faces liquidity challenges.

However, it wants all outstanding coupons in cash as and when they fall due.

In a statement by its Convener, Senyo Hosi, it expressed disappointment as the government continues to delay payments of outstanding coupons and principal amounts to bondholders.

According to him, government owed the bondholders ¢1.29bn (¢365 million as coupons and ¢926 million as principal), a significant sum that excludes payments owed to pensioners.

He made the statement during a virtual meeting with bondholders on Sunday, April 23, 2023.

Three coupons out of 24 coupon payments are due in the month of April.

The Pensioner Bondholders Forum had earlier threatened to resume its picketing at the premises of the Ministry of Finance if the government fails to pay all outstanding coupons and principals of bond investments by April 28, 2023. This it believes will put an end to the payment delays.

In a statement signed by its Convener, Dr. Adu Anane Antwi, it expressed disappointment about the government’s inconsistency regarding assurances to pay all pensioners their outstanding coupons and principals of bond investments.

A Press Release dated April 14, 2023 from the Ministry of Finance indicated that a meeting held with the leadership of Coalition of Individual Bondholders groups and the Pensioners Bondholders Forum indicated that the Joint Technical Committee constituted on January 18, 2023 reconvenes and agrees on a pathway, towards the settlement of the outstanding debt obligations by April 28, 2023.

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