Former Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors, Senyo Hosi, has cautioned a leading member of the ruling New Patriotic Party (NPP), Gabby Otchere-Darko, to stop spreading false information to Ghanaians about the debt exchange programme.
According to him, the series of tweets that were posted by Mr. Otchere-Darko earlier on Sunday, January 15, 2023, indicating that the country is in a deplorable condition especially with the issue of bondholders does not augur well for anybody.
“I see Gabby has put something out, he should stop misinforming people. When you are not at risk, you speak anyhow. You should think about the same people who went out there, queued to vote for you so that you can enjoy the power that you have. So, be sensitive with your speech.”
Senyo Hosi
Mr Hosi expressed his displeasure with the comments by the leading member of the NPP. He explained that Mr Otchere-Darko is not being honest about the dire implications that would befall Ghanaians, should the debt exchange programme be accepted.
He further stated that the decision made by the government to implement the debt exchange programme is unnecessary as it is not a prerequisite by the IMF.
The former Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors therefore advised the ruling government to be considerate of the citizens.
“Policy space is for serving, but not for lording. And that should not be lost on any of them up there.”
Senyo Hosi
It will be recalled that a leading member of the governing New Patriotic Party (NPP), Gabby Otchere-Darko, stated that an outright decline to the Debt Exchange programme could be detrimental to the efforts in resolving the economic challenges facing the country at the moment. He indicated that Ghana is not doing well economy wise, and the country needs the debt exchange programme to succeed in order to help close a deal with the International Monetary Fund (IMF).
Impact of bondholders stance on debt exchange
He explained that the current “mobilization of agitation” on individual bondholders poses a real and serious risk worse than what was witnessed when opposition to E-Levy succeeded in “derailing an already shaky” macroeconomic situation from 2021.
Mr Otchere-Darko noted that the debt exchange programme is voluntary for individual bondholders but a very necessary evil for the economy. He stated that its success is critical to restoring macroeconomic stability, securing an IMF progamme and it “hits those of us holding bonds” very hard.
The leading member of the incumbent party questioned what will be achieved if the “no-compromise opposition” to it wins. He highlighted that this may lead to national debt default and when that happens, the value of bonds will potentially be worthless.
Mr Otchere-Darko noted that if participation is low, people jeopardize resolving the economic crisis and hardships. He emphasized that these are hard and painful truths, and the main focus must be on how the burden to individual bondholders may be possibly eased, “but not to take the hardline position of simply saying no to participation”.
He further underscored the relevance of government’s debt exchange programme in facilitating negotiations with the International Monetary Fund (IMF).
Currently, Ghana is in talks with the International Monetary Fund for a deal to help salvage the country’s ailing economy. If approved, the deal will help Ghana to properly balance its books and project better prospects for the economy.
Ghana’s return to the IMF marks the country’s seventeenth engagement with the Fund, since attaining independence in 1957.
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