We can’t exempt you from debt exchange program – Ofori-Atta to Insurers Association
The Ministry of Finance has disclosed that the debt exchange program will not exempt the insurance industry.
According to a letter from the Minister, Ken Ofori-Atta, in response to an exemption request from the Ghana Insurers Association, the government cannot exclude them.
The Finance Ministry stated that it has made some adjustments to the debt exchange programme due to feedback from the industry but cannot exempt the insurance industry.
“Based on your letter and the feedback from you and other industry associations, the Government, working with its advisors, has made significant enhancements to the terms of the exchange instruments to address key concerns raised about accrued interest and zero coupons for 2023. The government has also improved the commercial terms of the exchange instruments; which details were announced on 24th December 2022.
“In this regard, Government encourages a positive response from the industry to enable us to complete the exercise in the interest of the broader economy. In our meeting…you made it very clear, the peculiar nature of your industry and therefore the forbearance required; an exemption, however, is not an option,” parts of the statement read.
The Ghana Insurers Association in December 2022 called for the exemption of insurance companies from the domestic debt exchange programme.
According to the association, 40 percent of its total assets for the third quarter of 2022 were invested in Government of Ghana Securities hence any attempt to give its members a “haircut” will spell doom for the sector.
