The management of investment fund manager, Databank has said it is having difficulties selling its government bonds since the government announced the decision to embark on a debt exchange programme on December 5, 2022.

Databank said: “If we are unable to trade the bonds we have, we are unable to access any cash to pay withdrawal requests.”

“Therefore, our original two-week estimate for withdrawal requests has now been impacted,” the fund managers revealed.

The management in a statement dated December 21, 2022, explained that in instances where bonds were sold, it was often done at a discount because the market value of bonds had fallen significantly.

“Following the launch, activity on the secondary market has virtually come to a halt, making it impossible for us to access liquidity."

“This is because fund managers are expected to exchange all their existing bonds for the new ones being issued by the Government,” Databank noted.