The alternative would be far worse – Ofori-Atta on govt’s harsh Debt Exchange Program
Speaking at a press conference on Monday, December 5, 2022, the minister said an alternative to the recently outlined Domestic Debt operation would lead to instability for the economy including the financial sector.
“The alternative would be a far worse economic crisis, with protracted closure from international markets (including imported goods and services) and further domestic economic instability both for the real economy and the financial sector. It would also mean depleted fiscal resources to support the neediest,” the minister said.
He has thus called for support for the government’s Debt Exchange Programme.
“The Government expects overwhelming support to this exchange. And in truth, the success of this necessary endeavour depends, of course, upon the public’s cooperation. That will also mean the media being helpful in disseminating the right information to economic actors. We are all in this together and we intend to get out of this together,” he stated.
The unsustainability of Ghana’s debt stock has led the government to announce the new programme. This is on the back of the government’s effort to secure a US$3 billion fund from the International Monetary Fund.
As part of the new programme, the minister announced that domestic bondholders will be made to exchange their bonds for new ones at new interest rates.