Isaac Adongo, a member of parliament for Bolgatanga Central, has urged bondholders who were negatively impacted by the government's debt exchange program to file a lawsuit to safeguard their interests.

The impacted bondholders may go ahead and submit a legal challenge to resolve the issue in court, according to the Bolga Central lawmaker, given the decision by finance minister Ken Ofori-Atta to disregard the attorney general's legal counsel.

"Ken Ofori-Atta disregarded the express legal advice of the AG to illegally and unilaterally rip the debt exchange program's contractual bond agreements into pieces, in violation of its terms of agreement.

Affected bondholders need to go to court, Mr. Adongo stated on social media.

The Attorney-General, Godfred Yeboah Dame has in a legal opinion indicated that a mandatory Debt Exchange programme would be illegal.

Finance Minister Ken Ofori-Atta on Monday announced domestic bondholders with the exception of Treasury bill holders will be affected by the debt exchange program.

Per the arrangement, bondholders will get 0% interest in 2023, 5% in 2024 and 10% onwards. The bonds will also be redeemed in 3 installments within 10 years.

According to documents in possession of Starr News. the Attorney General advised against any unilateral variation of Collective Agreement Clauses (CAC). The AG in his legal advice to the finance minister asked for domestic bondholders to be engaged before any such move.

According to the A-G, the debt exchange programme can at best be voluntary given the legal ramifications.

“In the absence of an agreement with parties, it would be unlawful for the government to unilaterally introduce CACs into bond agreements and may constitute an event of default under clause 12 of terms and conditions of the bond issued under the programme” Mr. Dame stated in his advice.

“Voluntary engagement with parties to bond agreements would be able to produce the outcome of a voluntary modification and inclusion of CACs on bondholders” he added.

Finance Minister Ken Ofori-Atta on Monday announced domestic bondholders with the exception of Treasury bill holders will be affected by the debt exchange program.

Per the arrangement, bondholders will get 0% interest in 2023, 5% in 2024 and 10% onwards. The bonds will also be redeemed in 3 instalments within 10 years.

The Chamber of Corporate Trustees has already rejected the debt exchange program announced by the finance minister.

In a statement, the Pensions Chamber assured pensioners it has not agreed with government on the debt restructuring moves.