The Social Security and National Insurance Trust (SSNIT) says it will fully participate in government’s alternative Domestic Debt Exchange Programme (DDEP) including pension funds.
The government intends to restructure ¢31 billion pension funds in the second phase of its Domestic Debt Exchange Programme which will affect E.S.L.A. Plc and Daakye Trust Plc.
SSNIT says it is satisfied with the new provisions of the programme assuring that the decision to sign onto this exchange will not affect its payment of pensions to beneficiaries.
“Government has tabled a new offer for pension funds that are holding government bonds, and the terms of the offer are certainly better than the first so we will look at it and then we will subscribe and make sure that we have enough liquidity to be able to pay immediate benefits when they are due”, Director General of SSNIT, Dr. John Ofori Tenkorang said.
“This invitation is intended to enable the Pension Funds to preserve their patrimonial value while exchange their eligible bonds for bonds that offer more potential liquidity”, a Monday July 31, 2023, statement from the Ministry of Finance announced.
It is a sequel to the recently launched dollar denominated bonds and cocoa bills exchange.
The Invitation is available only to registered holders of Eligible Bonds that are Pension Funds (“Eligible Holders”).
Eligible Holders tendering their Eligible Bonds pursuant to the Invitation will receive Exchange Bonds of the Government on the terms and subject to the conditions described in the Exchange Memorandum.
All offers to exchange Eligible Bonds made by Eligible Holders (an “Offer” or “Exchange Instruction”) are irrevocable subject to withdrawal rights under certain limited circumstances.
Government is making efforts to finalize the domestic debt restructuring by September 2023.