Individual bond holders to sue govt over domestic debt exchange

A group of individual bond holders is preparing to sue the Government of Ghana over their inclusion in the debt exchange programme after initially being spared.

The group has issued an invitation to all eligible bond holders to join the class-action which is expected to be filed next week.

”This decision and action are unconscionable, and the Government cannot be allowed to use its might to impoverish Ghanaians. We are by this bulletin inviting eligible bond holders who seek to protect their interest to join the class action,” the invitation read.

About 50 bond holders have signed up to be part of the lawsuit a few hours after the notice to join was shared on social media platforms, Convener of the group Kwadwo Agyapong told 3Business.

The Ministry of Finance has however sought to discourage individual bond holders against suing the government, arguing that obtaining judgement against the state in this matter would be difficult.

“The Republic of Ghana is a sovereign state. Consequently, it may be difficult for Eligible Holders of Eligible Bonds to obtain or realise awards against the Republic,” Finance Minister Ken Ofori-Atta said in the 58-page amended debt exchange offer.

“The Republic has submitted to the jurisdiction of the courts of Ghana and waived any immunity from the jurisdiction (including sovereign immunity) of such courts in connection with any action arising out of or based upon the Invitation to Exchange or any securities issued under the Invitation to Exchange brought by any holder of such securities,” it added.

The individual investors, who collectively hold about GH¢8 billion worth of government bonds, have until January 16 to sign onto the debt exchange programme. 3news.com

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