The Convener of the Pensioners Bondholders Forum, Dr Adu Anane Antwi, has urged government to ensure it fulfils its financial obligations to investors to maintain market confidence.
The former Director-General of the Securities and Exchange Commission (SEC) speaking on Joy News’ PM Express on Monday, February 17, stated that honouring bond payments on schedule is crucial to restoring investor trust in the government’s financial commitments.
“The only thing government must do is to ensure that it does things right to gain the acceptability of investors,” Dr. Antwi stated.
“Once you have gone through that, you have to make sure that you don’t default. And once you keep on honouring your coupons, the market will trust you again.”
His comments come at a critical time as the government faces its first major bond settlement under the current administration.
The settlement date of February 17 marks a key point in the financial cycle, as bondholders who tendered their bonds under the Domestic Debt Exchange Programme (DDEP) are due for payment after six-month intervals.
According to Dr Antwi, while some bondholders receive payments in smaller weekly amounts, those who agreed to the terms of the restructuring have their payments scheduled in bulk every six months.
“The first six months was August, the second six months was February last year, the third was August last year, and now this February is the fourth one,” he explained.
“All the first and second terms have been paid. That was done during the previous administration, and for this new government, this is the first time that they are going to pay.”
Dr. Antwi acknowledged that concerns about the political transition had left many investors uncertain about their financial future, but he reassured them that contractual agreements remain binding, regardless of government changes.
“Sometimes people think that another government can come and change things, but I have assured them that this is a contract you have with your clients,” he said.
He stressed that consistency in payments is key to regaining investor trust and ensuring that when the government needs to issue new bonds, the market will be willing to support it.
“Now that you are honouring the people’s payments regularly, the same thing must happen when the principal becomes due,” he noted.
“That is what will bring confidence. People will say, ‘Well, you are doing well.’ So if you want to go back to the market, the market will accept you to come and issue more bonds.”
Dr. Antwi also pointed out that some bonds held by individuals are yet to mature under the terms of the debt exchange program.
“For those who didn’t tender in, some of their bonds have already matured and are being paid. But for those who did, the first four years must pass before the principal comes due.
“In the next two years, 50% of the bonds held by individuals will become due for payment. Government must do all it can to ensure that when the time comes, those payments are honoured.”
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