Joe Jackson, Director of Operations at Dalex Finance, believes the government's debt restructuring approach would fail unless an expedient replacement for the exempted pension fund is found.
The administration caved into organized labor pressure on Thursday and spared pension funds from the debt swap scheme. If the government did not satisfy their demand, organized labour threatened an indefinite strike.
Addressing the media after signing a memorandum of understanding between the government and organized labor, Minister for Employment and Labour Relations Ignatius Baffour Awuah stated that the government and organized labor will work together to resolve all issues in order for the program to be successful in restoring the country's macroeconomic stability.
In response to the government's proposal, Mr Jackson stated that there is no local alternative to replace the pension funds, but the government can seek assistance from external bondholders.
Meanwhile, organized labor has put off its planned strike on December 27, 2022.
This strike was held to demand that its workers' pension funds be exempted from the ongoing debt swap scheme.
Dr Yaw Baah, Secretary General of the Trade Unions Congress (TUC), stated during a news conference that the decision to call off the strike was made in response to a compromise established with the administration.
"We are glad that, following significant consultation with the government, it has now exempted all pension funds from the domestic exchange scheme. We have just signed a Memorandum of Understanding. We appreciate the government's attention to our concerns. So, on December 27th, no one should be at home since our demands and conditions have been satisfied. So we'll all go to work. Nobody should stay at home."