Domestic Debt Exchange: Tell Us Your Alternative – Ahiagbah To NDC

The National Communications Director of the New Patriotic Party (NPP) has berated the opposition National Democratic Congress (NDC) for rejecting the debt exchange programme proposed by the government to get the country out of the current economic hardships.

According to Richard Ahiagbah, the NDC is rejecting the proposal of the government without providing any alternative solutions to the debt overhang of the country.

In a tweet shared on Monday, November 12, 2022, Ahiagbah accused the opposition of engaging in propaganda just to paint a gloomy picture of the current situation in the country.

“The NDC is not convincing in its argument against the difficult but necessary debt exchange program. I don't hear alternative ideas. Pessimism is not how we will get out of this global crisis. We need leadership & this govt is providing it Let's support govt,” parts of the tweet read.

The Minister of Finance announced a number of measures under the government's Domestic Debt Exchange (DDE) programme late Sunday.

He stated in a 4-minute address that the announcement was in line with the government's Debt Sustainability Analysis as contained in the 2023 budget he presented to Parliament on November 24.

The Minister laid out among others the exchange of existing domestic bonds with four new ones as well as their maturity dates and terms of coupon payments.

He also addressed the overarching goal of the government relative to its engagements with the International Monetary Fund as well as measures to minimize the impact of domestic bond exchange on different stakeholders.

"The Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds, particularly small investors, individuals, and other vulnerable groups," he said.

But the minority caucus in Parliament, led by its leader, Haruna Iddrisu, has said that it will not accept the debt restructuring programme announced by the finance minister.

“Let me state, without any fear of contradiction, that the form and structure of the debt restructuring plan announced by Ken Ofori-Atta are unacceptable to us, and we simply will not accept it,” Haruna Iddrisu said.

He also raised concerns over why the government failed to announce the exchange programme in the budget statement that was presented to parliament.

“How come the contours of this exchange programme were not announced in the budget statement that was presented to Parliament? Were invested consulted, were bondholders consulted, and how did he come to this conclusion?” he questioned.