The Ghana Registered Nurses and Midwives Association (GRNMA) has rejected the proposed Debt Exchange programme announced by the Minister of Finance Ken Ofori-Atta.[ads2]
According to the association, “Pension funds are a collection of contributions of individuals and by design they are meant to protect the vulnerable during retirement therefore any treatment of “individuals” as stated by the Minister of Finance must be indeed extended to all individuals as with pension funds including our GRNMA Fund, a Provident Fund for over 101 ,000 contributors who are nurses and midwives within the nursing and midwifery fraternity.
“Pension funds, particularly Tier 3 schemes, were encouraged to hold their investments for a minimum of 10 years. From its inception in 2012, most schemes have just met the 10 years or will be 10 years next year. Debt exchange for pension funds will mean that workers will not have access to Tier 3 funds after waiting for 5 – 15 years. This is simply unacceptable! By the National Pension Regulatory Authority’s (NPRA) regulations, all Pension Schemes have most of their assets in GOG securities. Trustees of these Pension Schemes were bound by regulation in the asset allocation policy by the NPRA. It will therefore be untenable for the poor worker to suffer under the proposed new bond issuance as part of the debt exchange. Government should therefore allow our Bonds to run until their maturity”, the association’s statement reads.[ads3]
It continues that, “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.”[ads4]
The Debt Exchange programme introduced by the government forms part of measures to stabilize the country’s economic challenges.
The Finance Minister Ken Ofori-Atta is confident that the programme will help resolve the country’s economic crisis in order to create jobs and protect income of the people.
The programme was officially launched in Accra on Monday December 5, 2022.[ads5]
