By Kingsley Webora TANKEH
With less than two months to the second coupon payment in 2025 for the Eurobond holders, Board Chairman-Securities and Exchange Commission (SEC), Dr. Adu Anane Antwi, has urged government not to renege on its promise.
He said it is imperative that government be consistent in coupon payments to restore confidence in the bond market and make its re-entry into the capital markets smooth, adding that the path back to capital markets hinges on consistent servicing of the debt owed Eurobond investors.
Following the Domestic Debt Exchange Programme (DDEP) in 2022 that eroded public confidence in government bonds, Dr. Antwi believes when government consistently honouring its debt obligations will restore confidence in the economy.
Speaking at the National Youth Investment and Financial Literacy Programmes launch organised by the Young Investors Network (YIN), Dr. Antwi stressed that:
“Now government has promised to pay every six months after the issuance of new bonds, it has to continuously do that to build back confidence so people will be willing to buy the bonds.”
Government honoured its first coupon payment of US$346million to Eurobond holders in January 2025 after successfully restructuring US$13billion in Eurobond debt, which saw participation by 98 percent of investors.
The next coupon payment is set to take placein July 2025.
He said government cannot rely on Treasury bills for long-term development projects.
“We take somebody’s money, and in three months time you are returning that money to the person. What can you do within the three months?” he quizzed, underscoring the urgent need for government to go back into the capital markets and obtain long-term capital for development.
While presenting on investment opportunities for the youth and investment decision-making, Dr. Antwi advised youth to consider investing in instruments with lower risks like government Treasury bills to secure their future.
“Every investment will have some element of risk. But, relatively, government’s short-term Treasury bill has the lowest risk. So if a young man 20 years of age puts in GH¢5,000 now into Treasury bills and rolls it over until retirement, he will become a millionaire,” he noted.
But is it that easy to make an investment decision?
The seasoned lecturer and chartered accountant said: “It should be easy once you decide that you want to build up something for your future”.
“We first have to save before we invest. Savings is just putting something down. But when you invest it, then you are growing your savings,” he noted.
He however noted that: “Unfortunately people are not saving. If you call people who are working, you won’t get even 5 percent of them who are actually saving”.
He bemoaned that when they save they don’t invest their savings, stressing: “When you invest, you can beat inflation and still retain the value of your investment or some of the value.
“I have taken 60 percent return on my investment before,” he shared.
As we know, in banking the higher the risk, the higher the interest and vice versa.
He however cautioned the youth against too risky-ventures disguised with unbelievably high returns.
The Young Investors Network (YIN) is an organisation that promotes investment and sensitises the youth to improve their financial literacy and guide them to make sound investment decisions. It organises competitions, quizzes, investment and financial literacy seminars and events across the country.
