Domestic Debt Exchange: Minority In Parliament Vows To Resist Attempts To Restructure Ghana’s Debt

Domestic Debt Exchange: Minority In Parliament Vows To Resist Attempts To Restructure Ghana’s Debt

  • The minority has vowed to resist attempts to restructure Ghana’s domestic debt, as announced by the minister of finance
  • The minority leader says the domestic debt programme in its current form is unacceptable
  • Addressing the media in parliament, Haruna Iddrisu said his side would use every legitimate means to block the move

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The minority in parliament says it will employ all legal means available to block the proposed Domestic Debt Exchange programme announced by the minister of finance, Ken Ofori-Atta.

According to the minority leader, Haruna Iddrisu, his side cannot support the policy in its current form.

The minority in parliament has vowed to resist attempts to restructure Ghana's debt
L-R: Minority Leader Haruna Iddrisu and Finance Minister Ken Ofori-Atta Image Credit: @GhanaLeaks @moi.gov.gh
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Domestic Debt Exchange: Minority Insists It Will Not Support Proposal

Addressing the media in Accra on Monday, December 5, 2022, the Tamale South MP insisted that the opposition MPs will not accept the proposed debt restructuring programme saying it cannot be allowed to proceed.

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“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”

Minority Questions Why 2023 Budget Did Not Capture Proposed Domestic Debt Exchange Programme

Haruna also questioned why the 2023 budget did not capture the debt restructuring policy saying his side will use every legitimate means to oppose the move.

“How come the contours of this exchange programme were not announced in the budget statement that was presented to parliament? Were invested consulted, were bondholders consulted, and how did he come to this conclusion?”

Explaining further, he said the proposed debt restructuring without recourse to parliament is contrary to the 1992 constitution and will be rejected by his caucus.

Ofori-Atta: Finance Minister Announces Plans To Swap Cedi Debts for New Bonds In Domestic Debt Exchange Scheme

Earlier, YEN.com.gh reported that the minister, in a televised address on Sunday, December 4, 2022, announced to local bondholders that there would be losses on interest payments under the Domestic Debt Exchange programme.

The exchange programme is the debt restructuring programme that the government needs to introduce to get the $3 billion bailout loan from the International Monetary Fund (IMF).

The finance minister explained Ghana will swap existing local-currency debt with four new bonds maturing in 2027, 2029, 2032, and 2037.

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Source: YEN.com.gh

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