The Minority Caucus in Parliament has called on the government to suspend the Debt Exchange Programme and engage various stakeholders in the exercise.

This comes after the government announced an extention of the deadline for bondholders to sign onto the Domestic Debt Exchange Program to January 31, 2023, as part of efforts to address the country’s economic challenges.

“Building consensus is key to a successful economic recovery for Ghana. Pending further stakeholder engagement with institutional and individual investors, recently invited to join the debt exchange programme, government is extending the expiration of the DDE to Jan 31, 2023.”
Finance Minister

Speaking to the media, the Minority Leader, Haruna Iddrisu disclosed that the Akufo Addo led government’s reckless borrowing contributed to the seeming failure of the debt exchange programme. “It is already failing and promises to be a failure,” Minority Leader Haruna Iddrisu emphasized.

“How did we get to this pit? Simple. Reckless borrowing! Sadly, the NPP Government led by Nana Akufo-Addo-Bawumia has not learned any lesson. The NPP was not only reckless in borrowing, but it has been reckless in announcing and implementing the Debt Exchange Programme.

“It is clear that the NPP Government did not properly think through this whole idea of a debt exchange programme. This has led to manifest confusion in the implementation of the ongoing debt exchange programme.”
Minority Leader

The Tamale South Member of Parliament (MP) indicated that the Programme will only exacerbate the already deplorable financial sector, which was wounded by the 2017 clean-up by the government. He minced no words by saying the Programme has been poorly-crafted and the earlier it is suspended the better.

The Minority group further ordered government to immediately hold on with the Domestic Debt Exchange Programme and engage in more comprehensive consultation on the matter with all stakeholders and the citizens as a whole.

“It called on all stakeholders for a national dialogue on the state of the economy and debt exchange programme with the view to achieving the most workable and least punitive steps that protect Ghanaians and households from the disastrous effects of the Domestic Exchange Program as currently received.”
Minority Leader

I don’t Believe Government Doesn’t Have Money To Pay Debts

Meanwhile, Lawyer Martin Kpebu, a Private Legal Practitioner, has cast doubt on government’s claim that it has no money to pay for the country’s debts.

“I don’t believe government doesn’t have money. I have looked at the budget and straight away if I look at the projects we intend to do, I believe government can cut back.”
Martin

Mr. Kpebu stated that there is money, however, government only intends to channel it to ‘other purposes.’

According to him, government can get funds if it cuts down on some infrastructure and developmental projects highlighted in the 2023 Budget.

“It’s not like people are asking for freebies, it is their hard-earned money that they lend to government and it is time to pay and government is like no, we don’t have money but government intends to continue certain developmental projects. You can’t rob Peter to pay Paul. No, it doesn’t work that way.”
Martin

It could be recalled that days after the government announced the exclusion of pension funds in the debt exchange programme, it decided to include individual bondholders.

Individual investors were initially not part of the domestic debt restructuring. However, the exemption of pension funds from the programme triggered the inclusion of individual investors

Speaking with a group of individual bondholders led by convener, Senyo Hosi and private legal practitioner Martin Kpebu after a petition to exclude individual bondholders from the debt exchange was presented to Hon Osei Kyei Mensah on Friday, the Suame MP called on the Finance Minister to properly engage with major stakeholders.