Domestic Debt Exchange: Ken Ofori-Atta's Announcement Receives Mixed Reactions From Ghanaians
- The minister of finance, Ken Ofori-Atta, has launched the country's domestic debt exchange
- The programme, which comes amid the ongoing IMF negotiations, will see the government slash interest payments on domestic bonds to 0% in 2023
- That announcement, among other measures, has been met with varied reactions, notable being politicians, risk analysts, among others
The launch of the nation's Domestic Debt Exchange programme has been met with mixed feelings from a section of the populace.
The programme, details of which were announced by the minister of finance, Ken Ofori-Atta, at a media briefing on Monday, December 5, 2022, assured that there would be no haircuts on investments on Treasury bills and principal of bonds.
Source: Facebook
Ken Ofori-Atta: Interest Payments On Domestic Bonds Slashed to 0% in 2023
As part of the ongoing negotiations for the country's International Monetary Fund (IMF) economic programme, the minister revealed that interest payments on domestic bonds had been slashed to 0% in 2023.
PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!
The minister, however, assured that enough measures had been put in place to minimize the impact of the country's domestic debt exchange on investors.
"Treasury Bills are completely exempted, and all holders will be paid the full value of their investments on maturity. There will be no haircut on the principal of bonds. Individual holders of bonds will not be affected," he said.
That move has been greeted with mixed reactions from the general citizenry, including politicians and risk analysts.
Reactions As Government Launches Domestic Debt Exchange Programme
Ranking Member of Parliament's Finance Committee, Dr Cassiel Ato Forson, described the announcement as a sad day for Ghana.
Taking to his Twitter handle, the NDC MP predicted that rating agencies would downgrade Ghana further.
Vice President of Imani Africa, Bright Simons, in a lengthy article sighted by YEN.com.gh, said he has little confidence in the measures announced by the minister.
The Ranking Member of Parliament's Roads and Transport Committee, Governs Kwame Agbodza, also took to his Twitter handle to accuse the minister of ruining the lives of Ghanaians and generations yet unborn.
However, the Governor of the Bank of Ghana, Dr Ernest Addison, is optimistic that the domestic debt exchange programme will help restructure the country's debt and inject some confidence into the Ghanaian economy.
"I think that the information provided should give us a broad level of confidence that the fiscal measures as well as the debt operations will help us foster confidence, improve our debt metrics and complement what we have been doing in the monetary policy to bring down pressures in the pricing levels," he said at the annual Bankers Dinner over the weekend.
Ken Ofori-Atta: Finance Minister Assures There Will Be No Haircut On Treasury Bills, Principal Bonds
Earlier, YEN.com.gh reported that the finance minister had given details of the debt exchange programme, which indicated that there would be no haircuts on investments.
According to the minister, enough measures have been put in place to minimize the impact of the country’s domestic debt exchange on investors.
New feature: Сheck out news that is picked for YOU ➡️ find “Recommended for you” block on the home page and enjoy!
Source: YEN.com.gh
