Bondholders’ inclusion in the debt exchange programme without further consultation, Kyei-Mensah-Bonsu warned, could destroy the middle class.
Professor Stephen Adei, an educationist and economist, has condemned Majority Leader Osei Kyei-Mensah-Bonsu’s recent remark on domestic debt exchange as regrettable.
Last week, Kyei-Mensah-Bonsu issued a dire warning, saying that including bondholders in the programme without further discussion would mean the end of Ghana’s middle class.
Adei responded to the Asaase 99.5 Accra comment by saying that duty bearers should be cautious when making comments about the domestic exchange program.
“I was actually honestly mad at the Majority Leader’s comment about destroying the middle class after receiving the petition of aggrieved bondholders,” Adei said.
“We must be very careful.”
Professor Adei also suggested that the government revise the threshold for pensioners who may be affected by the ongoing Domestic Debt Exchange Programme.
Adei argues that this will ensure that those who are vulnerable and financially unstable are exempted from the programme.
The Ministry of Finance on Monday extended the deadline to register for its domestic debt exchange to 31 January 2023, in order to “secure internal approvals” from the financial sector.
Speaking on Asaase 99.5 Accra on Monday (16 January), Adei warned that the country risks losing lives in the coming weeks if the government fails to review the threshold for pensioners.
“The pensioners – my colleagues – it is because when we got our lump sum, our life investments, we invested it into government bonds. So that is what is now at stake …” he said.
“There must be a threshold so that there is a certain minimum. Other than that, some of my colleagues will physically die in a [few] weeks … it is a very serious matter.”
Poor communication
The economist wants the government to step up efforts in educating Ghanaians on which categories of individuals are likely to be affected by the debt exchange programme.
“So much is being said without people understanding it,” Professor Adei said.
“We are talking about young people like you who are yet to go for pension and have invested in the bonds for their future.
“Communication has been terribly bad,” he said.
