Economist, Professor John Gartchie Gatsi, has outlined some measures if adopted can improve government’s Domestic Debt Exchange Program.
Speaking in an interview with Samuel Eshun on the Happy Morning Show, Professor Gyatsi, proposed that negotiation which is the main ingredient should be employed. “The first point is that the country is the one that borrows and when the country succeeds in the debt restructuring, we can discuss external ones.”
“The second principle is divided into commercial and concessional. So concessional is owned by both the world bank, ADB and other development banks. But what has happened is that if in the Covid-19 era IMF gave us 1billion with zero interest with a moratorium of 5years to pay, now IMF is asking about Covid-19 expenditure audit and up till now it’s not being done. The incentive actually is not there to engage in domestic debt restructuring externally,” he added.
He further assured the rollout would succeed when the engagement with the citizenry is intensified.
“I believe the finance minister should go back and engage the people because it belongs to the people. You have signed to pay principal and coupon rate on, so if you are going to default the wise thing to do is to engage,” he mentioned.
He mentioned that the behavior portrayed by government towards IMF bailouts in previous years, “have not shown leadership, so these are the issues hindering on.”
As part of measures to restructure the country’s debt burden, government launched the debt exchange programme.
The Minister for Finance, Ken Ofori-Atta speaking during the launch of the programme on Monday, December 5, 2022, said the objective is “to invite holders of domestic debt to voluntarily exchange approximately GHS137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakyebonds, for a package of New Bonds to be issued by the Republic.”
The Minority Caucus in Parliament rejected the programme, citing financial dishonesty on the part of President Akufo-Addo and his finance minister, and said the programme would visit more frustration on investors and deprive them of their returns on investment.
By: Miriam Akuetteh
