Domestic Debt Exchange: Ken Ofori-Atta Insists Scrapping Programme Is Not An Option

• The Minister of Finance is insisting that government will not scrap the Domestic Debt Exchange programme
• Ken Ofori-Atta says that is not an option on the table as there is no credible alternative to the programme
• This comes at a time there’s stiff opposition to the inclusion of individual bondholders in the programme

The government has indicated in strong terms that it has no plans of scrapping the Domestic Debt Exchange programme.

The Minister of Finance, Ken Ofori-Atta, says ditching the programme is not an option as there is no credible alternative.

Ofori-Atta Assures Concerns Over Programme Will Be Considered As More Ghanaians Kick Against It

This follows agitations by some individual bondholders after they were included in the programme.

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Speaking to Accra-based Joy News, Ofori-Atta assured that the concerns of the individual bondholders and pensioners will be factored in and taken on board.

“We have a situation where our debt exchange is necessary… we have a situation where we have come out of certain formulations and we have gone ahead to discuss or the financial institutions that way to mitigate that. I think we’ve done that successfully.”

Debt Exchange: Ofori-Atta Insists Programme Is Voluntary And Not Binding On Individual Bondholders

Meanwhile, the government has noted that the debt exchange programme is voluntary, and doesn’t bind any bondholder to accept the terms.

“It is a voluntary programme and the expectation is that we have an 80 per cent participation and so, that should be factual for everybody,” Mr Ofori-Atta said.

He also added that the government is targeting that participation in the programme and assured that the welfare of Ghanaians will be considered in finalizing the programme.

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The Debt Exchange programme forms part of conditionalities for the $3 billion International Monetary Fund (IMF) bailout package.

As a first step to accessing the cash, the government is among others expected to restructure its debts and bring them down to sustainable levels.

This culminated in the introduction of the programme which will see the investments of both domestic and external bondholders being traded for new ones with some going as far as 2037.

Domestic Debt Exchange: Minority In Parliament Fumes At Government; Demands Immediate Suspension Of Programme

Earlier, YEN.com.gh reported that more and more groups and individuals are kicking against the Domestic Debt Exchange programme in its current form.

According to the Minority Leader, Haruna Iddrisu, the deal in its current form will further worsen the plight of the ordinary Ghanaian.

Addressing the media in Accra on Monday, January 16, 2023, Haruna called on the government to put the rollout of the programme on hold and consult widely.

Source: YEN.com.gh