Dr. Matthew Opoku Prempeh, also known as ‘Napo’ the vice-presidential candidate for Ghana’s New Patriotic Party (NPP), has issued a formal apology to bondholders who were negatively impacted by the government’s Domestic Debt Exchange Programme (DDEP).
Speaking in a media interview on October 16, 2024, Dr. Opoku Prempeh recognized the sacrifices made by bondholders in supporting the country’s economic recovery during a challenging period of financial instability.
“All those who participated in the demonstration, we have to accept and apologise to them for taking them through what we did. It was a decision that was difficult but had to be made.”
Dr. Matthew Opoku Prempeh, Vice-Presidential candidate for the NPP
In his address, Dr. Opoku Prempeh expressed deep gratitude to the bondholders, emphasizing their indispensable role in stabilizing Ghana’s economy through the programme. He acknowledged that their participation was crucial in preventing a deeper financial crisis and positioning the country for recovery.
“What we have to know is that if we hadn’t met the DDEP bondholders, our economy that has now picked up wouldn’t have been possible,” Dr. Opoku Prempeh said.
The Domestic Debt Exchange Programme was a pivotal part of Ghana’s efforts to restructure its debt and secure an International Monetary Fund (IMF) bailout in the wake of mounting economic pressures. The government faced ballooning public debt, a weakened currency, and diminishing investor confidence, prompting the need for urgent debt restructuring.
Despite these sacrifices, Dr. Opoku Prempeh highlighted how their involvement was key to facilitating broader debt restructuring negotiations with international creditors and the IMF.
“If they hadn’t agreed for us to exchange their 95% bonds, we couldn’t have gone through the restructuring process with the IMF, and the foreign bondholders would have not followed for us to achieve this result.”
Dr. Matthew Opoku Prempeh, Vice-Presidential candidate for the NPP
This restructuring process, according to Dr. Opoku Prempeh, was essential to avert an even more severe economic crisis, as it allowed Ghana to meet its debt obligations and regain the confidence of international financial institutions.
“They saw that the average Ghanaian has suffered, so they felt compelled to support Ghana’s economy,” he added, crediting bondholders for playing a crucial role in the nation’s economic recovery.
Path to Economic Recovery
Dr. Opoku Prempeh reassured Ghanaians that the country is now on the path to recovery, following two years of economic challenges tied to the DDEP and broader fiscal reforms.
“After two years of going through this debt restructuring, we can see light at the end of the tunnel,” he remarked.
He highlighted that the NPP government’s decision to implement the DDEP, though difficult, was necessary to restore macroeconomic stability. Without the debt exchange, the government would have struggled to secure an IMF bailout and restore investor confidence. The programme has been credited with stabilizing the currency, lowering inflation, and positioning the country for future growth.
Dr. Opoku Prempeh’s comments reflect the NPP’s commitment to ensuring that the sacrifices made by bondholders were not in vain.
The government has consistently maintained that the DDEP was critical to the country’s long-term economic health, enabling the administration to restructure its debt obligations, reduce the budget deficit, and create a more sustainable fiscal environment for future growth.
Dr. Opoku Prempeh reiterated the NPP’s focus on achieving sustainable growth. He emphasized the importance of fiscal discipline, prudent economic management, and continued collaboration with international financial institutions to ensure that Ghana remains on a path of recovery and growth.
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