Ghanatodayonline.com News, Politics, Health, Education & More
Isaac Adongo, the Member of Parliament (MP) for Bolgatanga Central, has urged aggrieved bondholders in the government’s Debt Exchange Program to go to court to safeguard their interests.
The impacted bondholders may go ahead and submit a legal challenge to resolve the issue in court, according to the Bolga Central legislator, given the decision by finance minister Ken Ofori-Atta to disregard the Attorney General’s legal advice.
“Ken Ofori-Atta ignored the express legal opinion of the AG to illegally and unilaterally shred binding terms of the bond agreements in the debt exchange program. Affected bondholders must proceed to court” Adongo posted on social media.
The government’s newly announced debt swap scheme has been labeled unlawful by Attorney General Godfred Yeboah Dame.
The Attorney General reportedly recommended against any unilateral modification of collective agreement clauses (CAC), according to papers in the media’s hands.
In his legal advice to the finance minister, the AG urged that any such action be preceded by consultation with domestic bondholders.
The AG claims that given the legal repercussions, the debt exchange program can only be at most voluntary.
“In the absence of an agreement with parties, it would be unlawful for the government to unilaterally introduce CACs into bond agreements and may constitute an event of default under clause 12 of terms and conditions of the bond issued under the programme” Mr. Dame stated in his advice.
“Voluntary engagement with parties to bond agreements would be able to produce the outcome of a voluntary modification and inclusion of CACs on bondholders” he added.
The debt exchange scheme would effect all domestic bondholders, with the exception of those who hold Treasury bills, according to a statement made yesterday by Finance Minister Ken Ofori-Atta.
Bond holders will get 0% interest in 2023, 5% interest in 2024, and 10% interest after that.
Also, the bonds will be redeemed in 3 installments over the course of 10 years.
The Attorney General reportedly recommended against any unilateral modification of Collective Agreement Clauses (CAC), according to papers in the media’s hands.
In his legal advice to the finance minister, the AG urged that any such action be preceded by consultation with domestic bondholders.
Source: Ghanatodayonline.com
