Pension fund exemption: Govt will struggle to find alternatives – Joe Jackson

The government on Thursday succumbed to pressure from organised labour and exempted pension funds from the debt exchange programme.

Organised Labour had threatened to embark on an indefinite strike if the government did not meet their demand.

Addressing the media after signing a memorandum of understanding between the government and organised labour, Minister for Employment and Labour Relations, Ignatius Baffour Awuah said government and the organised labour will work together to resolve all issues to make the programme successful towards the restoration of macroeconomic stability of the country.

In reaction to the move by the government, Mr Jackson said there is no local option to replace the pension funds, but the government can turn to the external bondholders for help.

“I don’t think on the domestic front, there is going to be an alternative, the programme has been announced, the deadline is looming and so this exemption of pension funds will just leave a hole in domestic debt sustainability,” Mr Jackson said on Eyewitness News on Thursday.

Meanwhile, organised labour has called off its intended strike which was slated for December 27, 2022.

“We are pleased that after a very extensive engagement with the government, it has now exempted all pension funds from the domestic exchange program