Embattled Finance Minister, Ken Ofori-Atta, has opined that the Debt Exchange Programme announced by the government is a requirement by the International Monetary Fund (IMF).
According to Ofori-Atta, as part of the requirements for the government to get any form of economic support from the Fund, the DEP was required.
He further noted that the government has no choice but to undertake the debt restructuring programme to put the debt level on a sustainable path.
Addressing journalists in Accra, the minister said the launch of the domestic debt operations, will not lead to individual bondholders losing their funds.
Ofori-Atta also assured the financial sector players of the government’s support to minimise the impact of the programme on their activities.
An IMF mission team is presently in the country to continue discussions with the authorities on the country’s post-COVID programme for economic growth and associated policies and reforms that could be supported by a new IMF lending arrangement.
Ghana is seeking an economic programme from the IMF to address its balance of payment and other financing challenges.
As part of the deal, the government has embarked on a debt sustainability analysis which indicates that the country’s debt level which exceeded 100% of Gross Domestic Product is unsustainable, hence the need for such an action.
There are already calls on the government to provide a road map to avoid the negative impact on the financial sector and other sectors of the economy.
The Financial Minister pointed out that the World Bank and other development partners are on board to support the government in this regard.
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh