Former President, John Dramani Mahama, has disclosed that he is not against the debt restructuring programme being implemented by the Akufo-Addo-led administration.
According to him, the only problem with the programme has to do with the absence of dialogue. He revealed that government must do the needful to salvage the economy, which includes engaging relevant stakeholders on the matter.
“I am not opposed to debt restructuring. What has been the contention is the lack of dialogue and consultation with the debt holders on the domestic side. I know that negotiations are taking place with the bondholders on the external side but not the same treatment on the domestic side.”
John Mahama
In his address at Chatham House in London on Friday, January 27, 2023, the former President indicated that Ghana has to restructure its debt to revive the economy. However, he lamented the wrong procedure adopted by the finance minister, Ken Oofri-Atta, which he said has led to the massive rejection of the programme by Individual Bondholders and various labour unions.
“I have been an advocate for dialogue. Before this whole crisis started, I advised the government and said they should hold a national dialogue on the economy, give us the state of the economy and let everybody understand and after that seek broad consensus behind the economic programme. But this was never done and what we expected will happen, happened.”
John Mahama
His Excellency John Mahama iterated that the government failed to heed numerous pieces of advice from the opposition on cutting down borrowing and spending scarce resources prudently. In effect, he blamed the mismanagement and recklessness of the Akufo-Addo government for the current economic crisis.
“We had been raising the red flag since 2019 about the government’s reckless borrowing. Going onto the Eurobond market every year for 3 billion dollars and not investing it in the productive sectors of the economy and using most of it for consumption and that is what has ended us where we are.”
John Mahama
Furthermore, Mr Mahama called for youth participation in the governance process in Africa. He noted that Africa has a youthful population of about 60 percent which can work to its advantage.
“We need to continue to deepen democracy in the modern world. Colonialism, slavery and an unfair world order shouldn’t be a reason to absolve corrupt African leaders who misuse resources of the continent.”
John Mahama
Individual Bondholders Forum petition Togbe Afede
Meanwhile, the Individual Bondholders Forum has petitioned Togbe Afede XIV, the Agbogbomefia of the Asogli State, to help them get an exemption from the Domestic Debt Exchange Programme.
Addressing the former President of the National House of Chiefs, the Convener of the Individual Bondholders Forum, Senyo Hosi, stated that owing to the caliber of person Togbe Afede is, his views on the matter will be respected.
“Togbe, the matter is an eye red matter and for someone who has led the capital market and being one of the players who birthed the capital market, besides your royal place as the Agbogbomefia of the Asogli State, you are a pioneer in this industry…
“So, we are here to petition your office, to petition you as an individual and the state of Asogli not to sit by and watch the lives of 6.5 million people devastated and subjected to shackles of penury. So, our plea here is very simple, the steps being taken by the government are unsustainable and very unnecessary.”
Senyo Hosi
It will be recalled that the Individual Bondholders Forum are demanding the complete exclusion of its members from the Domestic Debt Exchange Programme. They have stated that their inclusion will destroy household confidence in Ghana’s financial system and securities market.
The domestic debt exchange program since its announcement has faced huge opposition from labor groups that managed to get pension funds exempted. Several groups made up of individual bondholders have also rejected the programme by the government.
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