Debt restructuring programme was a betrayal of pensioners – Dr Ato Forson

The Minority Leader in Parliament, Dr. Cassiel Ato Forson, has sharply criticized the government's Domestic Debt Exchange Programme (DDEP), labeling it a "betrayal of pensioners" whose life savings were affected despite public assurances.

Speaking in Parliament during a policy debate on Ghana’s post-IMF recovery efforts, Dr. Forson expressed outrage over the inclusion of pension funds in the restructuring exercise, arguing that it violated public trust and disproportionately impacted elderly citizens who had no time to recover their financial losses.

“What the government did to our pensioners in the name of debt restructuring was cruel and unacceptable,” Dr. Forson stated. “These are people who spent decades serving this country, only to be punished at the end of their working lives.”

Background to the Controversy

The Domestic Debt Exchange Programme, launched in late 2022, was a key component of Ghana’s efforts to qualify for a $3 billion IMF bailout package. It involved swapping old government bonds for new ones with lower interest rates and longer maturity periods.

Although government officials initially promised to exclude pensioners, many individual bondholders — including retirees — were later asked to participate, prompting nationwide protests and emotional scenes of elderly citizens picketing the Ministry of Finance in early 2023.

While the government eventually introduced some relief measures, critics say the damage had already been done.

A Question of Trust

Dr. Forson argued that the government’s actions have eroded public trust in the financial system and warned that such betrayals could discourage future investment in government securities.

“If retirees can’t be protected during economic reform, what message are we sending to the rest of the country? That loyalty and long-term planning are not rewarded?”

He called for a comprehensive review of the restructuring process, compensation for affected pensioners, and legal reforms to ensure that such an incident never happens again.

Government Response

The Ministry of Finance has previously defended the DDEP as a painful but necessary step to stabilize the economy, restore debt sustainability, and unlock international support. Officials insist that they did all they could to minimize the impact on vulnerable groups.

However, critics like Dr. Forson argue that fiscal discipline should not come at the expense of the most vulnerable.

Economic observers are now closely watching how the government balances its ongoing IMF commitments with growing domestic discontent over the social costs of reform.