The management of the Ghana Registered Nurses and Midwives Association (GRNMA) has registered its dismay and disappointment on the proposed Debt Exchange programme introduced by the Minister of Finance Ken Ofori-Atta.
The affiliation in a press release mentioned it rejects the federal government’s proposal.
The affiliation defined the idea for its rejection stating that “Pension funds are a collection of contributions of individuals. By design they are meant to protect the vulnerable during retirement. Any treatment of “individuals” as said by the Minister of Finance have to be certainly prolonged to all people as with pension funds together with our GRNMA Fund, a Provident Fund for over 101 ,000 contributors who’re nurses and midwives throughout the nursing and midwifery fraternity;
“Pension funds, notably Tier 3 schemes, had been inspired to carry their investments for at least 10 years. From its inception in 2012, most schemes have simply met the ten years or will probably be 10 years subsequent yr. Debt alternate for pension funds will imply that staff won’t have entry to Tier 3 funds after ready for five – 15 years. This is just unacceptable! By the National Pension Regulatory Authority’s (NPRA) rules, all Pension Schemes have most of their property in GOG securities. Trustees of those Pension Schemes had been certain by regulation within the asset allocation coverage by the NPRA. It will subsequently be untenable for the poor employee to endure underneath the proposed new bond issuance as a part of the debt alternate. Government ought to subsequently enable our Bonds to run till their maturity.
“Pensioners should not be made to suffer the consequences of Governments fiscal indiscipline when they have paid their fair share of taxes, worked to build the economy whiles taking very low salaries; It is unacceptable that a Government that budgets 18% inflation in 2023 will consider zero interest rate for pension funds of poor, hardworking, law abiding citizens within the same period.”
It added “As a matter of urgency, government must withdraw the inclusion of pension funds from its debt exchange program and allow the funds as invested to run until their maturity.”
The Finance Minister Ken Ofori-Atta through the launch of the programme in Accra on Monday December 5 mentioned the Government of Ghana expects overwhelming help for the debt alternate programme.
In his view, the programme is the surest method of restoring the Ghanaian financial system again on monitor to create jobs and shield earnings of the individuals.
Launching the programme in Accra on Monday December 5, he mentioned after citing finest practices in nations equivalent to Greece, that the debt alternate programme “is an orderly way to put our economy back on track in order to create jobs, protect income and restore hope to the Ghanaian people.”
“the govt expects overwhelming support for this exchange programme,” he pressured.
He additional dismissed speculations that there’s going to be haircuts following the programme.
“There will be no haircuts,” he mentioned.
He additional justified the introduction of the debt alternate programme.
He said that it has change into crucial due to the large challenges with debt servicing.
He revealed that debt servicing is consuming “almost of government’s revenue and also 70 per cent of tax revenue.”
“Which is why we are announcing this to restore our capacity to service debt,” he pressured.
Under the debt alternate programme, he mentioned, ” home bond holders will probably be requested to alternate their devices for brand spanking new ones.”
He added “Existing domestic bonds as of 1st December will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.”
The annual coupons on all of those bonds will probably be set at 0 % in 2023, 5% in 2024 and 10% from 2025 till maturity.
“Coupon funds will probably be semi annual ‘ he pressured.
By Laud Nartey|3news.com|Ghana
Source: 3news.com
