Any required debt swap program would be against the law, according to Attorney General Godfred Yeboah Dame.
The debt swap program will effect all domestic bondholders, with the exception of those who hold Treasury bills, according to a statement made yesterday by Finance Minister Ken Ofori-Atta.
Bondholders will receive 0% interest in 2023, 5% interest in 2024, and 10% interest after that. Also, the bonds will be redeemed in 3 installments over the course of 10 years.
The Attorney General reportedly cautioned against any unilateral modification of collective agreement clauses, according to documents in Starr News’ hands (CAC).
In his legal advice to the finance minister, the AG urged that any such action be preceded by consultation with domestic bondholders. The AG claims that given the legal repercussions, the debt exchange program can only be at most voluntary.
According to Mr. Dame’s counsel, it would be illegal for the government to unilaterally add CACs to bond agreements in the absence of a contract with the parties and might result in a breach of clause 12 of the terms and conditions of the bond issued under the program.
A voluntary adjustment and the introduction of CACs on bondholders might result from consensual engagement with bond agreement parties, he continued.
Isaac Adongo, a member of parliament for Bolgatanga Central, has consequently asked affected bondholders to proceed to the law court given the decision by finance minister Ken Ofori-Atta to disregard the legal advice of the Attorney General, despite the fact that the government has stated the debt exchange program is voluntary in accordance with the AG’s advice.
Ken Ofori-Atta violated the debt exchange program’s bond agreements in an unconstitutional and unilateral manner by disregarding the AG’s stated legal advice. Bondholders who are affected must go to court, Mr. Adongo stated on social media.
The debt swap program suggested by the finance minister has already been rejected by the Chamber of Corporate Trustees. The Pensions Chamber assured pensioners in a statement that it had not concurred with the government on the debt restructuring measures.
Below is the legal opinion of the AG on the debt exchange program
Source: newsthemegh.com