Godfred Bokpin, a Finance Professor, has stated that attempts by the Akufo Addo led government to curb the current economic challenges facing the country should not be harmful to citizens.
According to him, even though it is necessary to restore the country’s deplorable economic situation, it must be done with care.
Speaking in an interview, the professor admonished that all efforts by the government to lessen the economic crisis must not affect individuals and the private sector.
“These are very difficult times for Ghana. We sympathise with Ghanaians. But in as much as we’re with government that we need to restore macroeconomic stability, we must be mindful that we don’t do so at a great cost and perhaps irreparable damage to private sector and households. We can only appeal to government.”
Bokpin
Professor Bokpin made these comments on the back of government’s proposed domestic debt exchange programme, which has been criticised for its harsh terms.
The policy, which was announced in December 2022, has so far been met with agitation from bondholders and the general public at large. According to the displeased citizens, the programme will deny them the benefits of their bond investments, hence their resistance.
Despite the agitation, government has stressed that the programme is a critical intervention to help address the prevailing economic crisis.
Propose A More Accommodating Programme
Prof. Bokpin expressed displeasure over government’s approach to sustaining its debt. He stressed that government’s approach is “a bit more painful than how much people are going to lose.”
“We are doing something that looks as though we are under military rule, but we are under democracy. Under property-owning democracy, you cannot tear into people’s property and investment the way we are doing.”
Bokpin
With less than 24 hours to the deadline for enrollment onto the the Debt Exchange Programme, Mr Bokpin, urged government to further extend the January 16 deadline.
According to him, he wants the government to present a more attractive programme than the current one. He noted that although government intends to restore macroeconomic stability, it should not be done at the disadvantage of the private sector.
“We can only appeal to the government. It is a programme, we have control over it. As much as possible government could extend the deadline and come with a bit more accommodative proposal in a consensus-building manner that may even be possible and attractive to individual bondholders in a certain way that allows all of us to share the burden.”
Bokpin
The Finance Professor, indicated that government should do this in the “interest of nation building that we are able to carry everybody along.”
Prof. Bokpin noted that Ghanaians must also be able to accept some level of the debt restructuring to allow government to sustain its debt and restore economic stability.
“I have said before that where we find ourselves there is no way government can meet its future financial obligations as and when they fall due without sharp adjustment in its fiscals, in terms of expenditure and revenue and then the financing mix. And therefore a certain level of debt restructuring, we should be able to accept as Ghanaians so that we can come out of this together.”
Bokpin
Prof opined that what is necessary for the government to do in this case, is some consensus-building with stakeholders
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