The government of Ghana has offered to restructure around GH¢30 billion ($2.7 billion) worth of pension funds as part of its efforts to reduce its debt burden under an IMF loan agreement.
The proposal involves extending the maturity dates of the local currency bonds held by the pension funds and increasing the interest rates on them.
However, the labour unions representing the workers have asked for more time to consult their members on the offer, citing some “mistrust of government promises.” The unions said they will make a final decision by the end of June.
The pension funds were initially excluded from a domestic debt exchange programme in February after the unions threatened to strike, but they have now been given their own deal.
The government hopes that by restructuring its domestic debt, it will save billions of dollars in near-term interest payments and meet the conditions of its $3 billion IMF loan deal, which aims to address its worst economic crisis in a generation.