A group of individual bondholders has threatened to sue the government for including them in the contentious debt swap scheme.
In a statement issued by one of its convenors, Senyo Hosi, the organization known as the Ghana Individual Bondholders' Forum asked individual bondholders to reject and desist from complying with the required deadline imposed under the Domestic Debt Exchange (DDE) scheme.
It also asked indirect bondholders, such as those in mutual funds, cash trusts, and balance funds, not to accept the DDE.
It also encouraged the government to establish a communication channel for "urgent candid, transparent, and sincere engagement on the DDE with the IBF in order to seek an effective resolution to the emerging deadlock and the rapidly dwindling trust in the Ghanaian economy."
"The medium- to long-term perspective and outlook of Ghana's domestic investment culture will be harmed by this DDE effort, and we urge on government to display the necessary sensitivity to enable a constructive conclusion in the best interests of everybody," the statement continued.
The government announced in December that the group of bondholders who had previously been excused from the local debt exchange scheme would now be included in the program.
Individual bondholders were included when the government agreed to the Labour Union's demand that pension funds be exempted from the debt swap scheme.
According to the Finance Ministry, Ghana extended the deadline for registering for its domestic debt exchange in December to January 16 in order to "obtain internal clearances" from the banking industry.
The Ministry of Finance also announced a shift in the debt exchange, with the creation of eight new products.
Local bonds were to be swapped with new ones expiring in 2027, 2029, 2032, and 2037, with yearly coupons set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity under the original plan.
The Finance Ministry announced the newest extension, saying that eight more instruments will be established, increasing the total number of new bonds to 12, with one due each year from 2027 to 2038.
In its statement, the Ghana Individual Bondholders' Forum said: "Pending further talks and engagements (including the taking of legal action if required), we plead as follows:
1. Direct Bondholders: Reject and refuse to comply with the DDE program's mandated deadline, and join the IBF's efforts.
2. Bondholders who are not direct bondholders (Investors in mutual funds, cash trusts, balance funds).
Inform your fund managers that the DDE will not be accepted.
3. The government
Please create a line of contact with the IBF for an urgent candid, transparent, and sincere discourse on the DDE in order to seek an effective resolution to the emerging deadlock and the rapidly dwindling trust in the Ghanaian economy.