In response to the concerns voiced by stakeholders, the University Teachers Association of Ghana (UTAG) has requested that the government take another look at the Debt Exchange Program.
Stakeholders have rejected the program that was introduced by the finance minister Ken Ofori-Atta on Monday, December 6. These groups include the Ghana Medical Association (GMA), the Ghana National Union of Traders Association (GUTA), and the Trades Union Congress (TUC).
Additionally, UTAG stated that they would strongly disagree with any action that would make the predicament of the already struggling university lecturer worse.
They issued a statement saying, “In particular, we reject the wholesale implementation of the recently announced debt exchange programme.”
It added “We are convinced that the debt exchange programme may negatively affect the Ghana Universities Salary Superannuation Scheme (GUSSS) as well as Tiers Two and Three Pension Funds of our members. It would also result in significant reduction in the principal and/or interest payments due members who have invested in mutual funds and may need resources to meet emergency needs.
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“Again, given that the individual savings of many of our members are lodged with the various Credit Unions on our campuses, part of which have been invested in bonds, any attempt at wholesale implementation of the announced debt exchange programme would ultimately harm the savings of our members.
“We, therefore, reiterate our vehement opposition to any straight-jacket implementation of the announced debt exchange programme. It should not, in any way, affect the pensions and other investment returns of the hardworking Ghanaian.
“Government should consider the genuine concerns raised by various stakeholders and rethink the debt exchange programme. UTAG is willing to brainstorm and support Government to find lasting solutions to address the current economic challenges.”
The Minister of Finance, Ken Ofori-Atta launched the Debt Exchange Programme as part of efforts to save the ailing economy.
Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones.
