An economist and Finance Lecturer at the University of Ghana, Professor Lord Mensah, has stated that the government has other revenue streams that can make for exempting pension funds from the debt exchange programme.

According to him, the government can cut expenditures in other ways that will not affect its debt sustainability agenda.

“Government sacrificing about ¢41 billion from Pension Funds as interest payment should not be a challenge at all. This is because there is still a way out, that government can re-adjust and re-align some of the expenditure lines to make room for this exemption,” myjoyonline.com quoted him.

Government and Organised Labour have reached an agreement to exempt pension funds from the debt exchange programme after several agitations.

However, despite growing concerns that external bondholders may make similar demands, Prof. lord Mensah noted that the conditions are different.

“These investors are long-term in nature, and they will not be responding immediately to some of these measures that the government is undertaking,” he said.

The finance ministry announced the extension of the expiration date of the invitation date for the Voluntary Domestic Debt Exchange to Monday, January 16, 2023 (at 1600 hours).

The Settlement Date for the Invitation is now expected to occur on Tuesday, January 24, 2023, “or as soon as practicable thereafter, but no later than the Longstop Date which is now scheduled for Tuesday, January 31, 2023, unless further extended by the Government pursuant to the Invitation,” a press release from the Finance Ministry stated.

“The announcement Date is now expected to occur on or about 17th January 2023″.

The previous deadline for the invitation was set for Friday, December 30, following the extension of the original deadline of Monday, December 19.

SSD/BOG