Gov’t forcing banks to coerce customers to accept DDEP – Senyo Hosi alleges

Convener of the Individual Bondholders’ Forum, Senyo Hosi, says the government is pushing banks to force their customers to accept the Domestic Debt Exchange programme (DDEP). 

Mr Hosi describes this action as inimical to the financial market and will be resisted.

Mr Hosi said the “unethical” action must be stopped immediately.

According to him, should this persist, customers will not have the appetite to invest in government bonds in the future.

“Unfortunately, on the market, we see some conducts that are unethical and also illegal. We see pressure coming from different quarters compelling banks to try and force customers to try and tender or accept the DDE. That is illegal, that is unethical and immoral,” Mr Hosi said in an interview with Citi FM on February 7.

“The risk of that is that tomorrow the same customer will come and say he accepted that under duress. Who is going to take responsibility for that?” he queried.

Meanwhile, the Finance Ministry has granted a three-day administrative window for bondholders under the programme to complete the process.

Based on this development, the Domestic Debt Exchange Programme will now end on Friday, February 10.

According to sources, the sudden rush by bondholders to sign up close to the deadline placed “some strain” on the IT infrastructure.