The Minority in Parliament led by Haruna Iddrisu is calling on the government to suspend the Debt Exchange Programme exercise.
Addressing the media, the Minority Leader, Haruna Iddrisu said the Akufo-Addo government’s reckless borrowing has contributed to the seeming failure of the debt exchange programme.
According to the minority, Reckless borrowing on the part of the NPP Government led by Nana Akufo-Addo-Bawumia has resulted in the debt exchange programme which was not properly planned.
“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.”
The Minority group called on the government to “immediately suspend the Domestic Debt Exchange Programme and engage in more comprehensive consultation on the matter with all stakeholders and the Ghanaian people.”
“It has 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.”
In a bid to rescue the economy and secure a deal with the International Monetary Fund (IMF), the government has proposed that all bondholders will not receive any interest on their bonds for the 2023 financial year.
The payment of dividends, according to the government is likely to begin next year, 2024 at a discounted rate of 5%.
In relation to this, bondholders who may want to transfer their bonds will not be able to get the full principal they initially invested as bonds.
Government however announced plans to extend 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.