Debt Exchange: Dr Ato Forson Predicts Programme Will Lead To Collapse Of 5 Commercial Banks In Ghana

• The Ranking Member of Parliament’s Finance Committee has predicted another banking sector crises in the country
• Dr Cassiel Ato Forson says the Domestic Debt Exchange programme will lead to the collapse of five (5) commercial banks
• He again reiterated assertions that the programme in its current form will lead to the impoverishment of ordinary Ghanaians

The Minority spokesperson on Finance, Dr Cassiel Ato Forson says the Domestic Debt Exchange programme in its current form will have a devastating impact on the country’s banking and financial sector.

According to the NDC MP, should the deal be implemented, some commercial banks might not get the needed liquidity to survive.

Some 5 Commercial Banks At Risk Of Collapse Due To Domestic Debt Exchange Programme - Dr Ato Forson

The Ajumako-Enyan-Essiam MP predicted the collapse of at least five of such banks should government undertake the programme.

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Finance Minister insists scrapping Domestic Debt Exchange programme is not an option

According to him, the prediction can be attributed to the unavailability of liquidity support for these banks which have been locked up in government bonds.

Speaking to the media, he said most of the banks are unable to access their liquidity support which has been locked up in government bonds

“The banks will collapse. In fact, I project a minimum of five banks collapsing if this [debt exchange] goes ahead. Not only that, a number of banks will have to lay off staff and close some of their branches. The monies that banks have invested is not their money. It is depositors’ money, so there will be liquidity issues.”

Current Economic Crisis Will Be Dire On Financial Sector - Dr Ato Forson

Dr Ato Forson also cautioned that the current economic situation in the country will be dire in the financial sector.

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Zenith Bank Ghana ceases securities and capital market operations

He also reiterated concerns over the Debt Exchange programme saying bondholders and the general population will be further impoverished if it goes ahead as proposed by the government.

Kwame Pianim Declares Ghana Bankrupt Due To Ofori-Atta's Bad Policies; Says Ghanaians Will Suffer For 30 Years

Earlier, YEN.com.gh reported that a founding father of the governing New Patriotic Party (NPP), Kwame Pianim said Ghana is currently in a state of bankruptcy as a result of the bad economic policies by the finance minister, Ken Ofori-Atta.

According to the renowned economist, the current mess will plunge Ghanaians into massive suffering for the next thirty to forty years.

Source: YEN.com.gh