The Member of Parliament for Bolgatanga Central Isaac Adongo has assured the Finance Minister Ken Ofori-Atta of setting the country back 20 years, following the debt exchange programme he launched on Monday December 5.
In the view of Mr Adongo, the Finance Minister’s actions have destroyed the financial sector of the economy.
Speaking to journalists in Accra on Tuesday December 6, Mr Adongo said “You cannot unliterally sit in the office, shred those agreements and illegally and arrogantly compel people to accept what you want.
We are all aware that since yesterday our Financial sector has become inundated by customers calling in and some actually rushing there taking that something untoward was happening to their money.
“Today, I want to appeal to all bond holders and investors to exercise caution and spare our financial sector from any further pressure. But I want to announce today that it is quite clear from the Attorney General that those was not the action of government, it is the action of Ken Ofori-Atta and not the government.
“It is not possible for cabinet to approve a transaction that the chief legal officer the Attorney General says it is illegal so Ken is on his own. He already collapse our banking sector , our savings and loans, our micro finance institutions , he has already collapse the capital market where liquidity dried out way back in 2021.
For several years we have been trying to build a capital market that is respected and loved. What he has done today is to set us back 20 years in our fight to build a resilient and a respected legal capital market.”
The Finance Minister Ken Ofori-Atta during the launch of the programme in Accra on Monday December 5 said the Government of Ghana expects overwhelming support for the debt exchange programme.
In his view, the programme is the surest way of restoring the Ghanaian economy back on track to create jobs and protect income of the people.
Launching the programme in Accra on Monday December 5, he said after citing best practices in countries such as Greece, that the debt exchange programme “is an orderly way to put our economy back on track in order to create jobs, protect income and restore hope to the Ghanaian people.”
“the govt expects overwhelming support for this exchange programme,” he stressed.
He further dismissed speculations that there is going to be haircuts following the programme.
“There will be no haircuts,” he said.
He further justified the introduction of the debt exchange programme.
He stated that it has become necessary because of the enormous challenges with debt servicing.
He revealed that debt servicing is consuming “almost of government’s revenue and also 70 per cent of tax revenue.”
“Which is why we are announcing this to restore our capacity to service debt,” he stressed.
Under the debt exchange programme, he said, ” domestic bond holders will be asked to exchange their instruments for new ones.”
He added “Existing domestic bonds as of 1st December will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.”
The annual coupons on all of these bonds will be set at 0 % in 2023, 5% in 2024 and 10% from 2025 until maturity.
“Coupon payments will be semi annual ‘ he stressed.
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