Debt Crisis: Alan Kyerematen Proposes “10-10-10” Solution To Counter Ofori-Atta’s Domestic Debt Exchange
- Alan Kyerematen has criticised the Domestic Debt Exchange Programme introduced by Ken Ofori-Atta to deal with Ghana's debt crisis
- The NPP flagbearer hopeful has said a policy he dubbed "10-10-10" would be more appealing to Ghana's bondholders
- The 10-10-10 solution involves a 10% haircut on the principal of bonds held by institutional bondholders, then a shorter maturity period of 10 years and a 10% interest
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New Patriotic Party (NPP) flagbearer hopeful Alan Kyerematen believes he has a better alternative to finance minister Ken Ofori-Atta’s Domestic Debt Exchange Programme (DDEP) to solve Ghana's debt crisis.
The DDEP is one of Ofori-Atta’s strategies to solve the country’s current debilitating debt crisis. The programme, among others, proposes to withhold paying coupons to Ghana’s bondholders in 2023 and 2024 and 5% from 2025.
Initially, the minister had proposed to treat both institutional and individual bondholders the same, however, a fierce protest by the Individual Bondholders Forum compelled the minister to exclude them.
The DDEP has been criticised widely as insensitive and has recently just gotten the support of the Ghana Association of Bankers (GAB) and Ghana Association of Insurers (GAI) after some modifications to aspects of the original DDEP.
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But appearing on the late evening programme Good Evening Ghana on Monday, January 30, 2023, Alan Kyerematen proposed what he called the “10-10-10” idea to lift the country from the doldrums of high indebtedness.
“The 10-10-10 solution…is that there will be a 10% haircut in the principal of bonds held by institutional bondholders. And then there will be a shorter maturity period of 10 years and then also there will be a 10 per cent interest that is paid on their total bond holding,” he explained.
He said what is being proposed under the DDEP, which is zero per cent for 2023 and 2024 and 5% from 2025 onwards is untenable.
“It’s a very complicated formula,” he criticised Ofori-Atta’s proposal
Ace Ankomah says Ghana irritates him
Meanwhile, YEN.com.gh has reported in a separate story that private legal practitioner Ace Ankomah, has said he gives up on Ghana each and every passing day.
Ankomah, who is a leading member of the pressure group OccupyGhana, also told Citi News that the country irritates him very much.
He disclosed that the new approach adopted by the influential pressure group to make their voices heard on national issues is to issue press statements.
He said the group will no longer stage demonstrations like its members did when John Mahama was president.
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