‘Retired and Forgotten’ – Pensioner Eurobond Holders plead for exemption amid Ghana’s $5bn debt forgiveness
A group of pensioner Eurobond holders in Ghana has expressed deep disappointment and frustration over the government’s handling of the Eurobond debt restructuring, following remarks made by Finance Minister Ken Ofori-Atta. The Minister recently announced that Eurobond investors had forgiven $5 billion of Ghana’s debt, which left the pensioners feeling overlooked in the negotiations that have primarily focused on international and commercial bondholders.
The pensioners, many of whom invested in Eurobonds to secure financial stability during retirement, argue that the 37% haircut, reduced interest rates, and extended maturity dates under the restructuring plan are too harsh for individuals, particularly those relying on these investments for essential expenses, such as medical care. Unlike institutional investors, who may be more equipped to absorb these losses, the pensioners claim that the adverse financial effects of the restructuring will severely impact their already limited resources.
The group has made several attempts to engage the government, submitting letters to the Finance Ministry, but they have yet to receive any responses. After enduring two years of zero-interest payments, they argue that the new terms will further erode their financial security.
In their plea for exemption from the restructuring, the pensioners have outlined several requests:
- Exemption for pensioners and other vulnerable groups from the Eurobond restructuring.
- Exploration of alternative solutions to safeguard their financial stability.
- Meaningful engagement with the government to address their specific concerns.
The pensioners are calling on the media and the public to support their appeal, stressing that their numbers are small and their requests are reasonable. They hope that raising awareness will lead to a fairer resolution and ultimately gain the government’s attention to their plight.
