Minority rejects government’s debt restructuring program

As a critical part of the ongoing negotiations with the International Monetary Fund to secure Ghana $3 billion in support for the economy, the government is exchanging already sold bonds for new ones with a more flexible interest payment plan.

But addressing a press conference on Monday, Minority Leader, Haruna Iddrisu, said the form and structure of the program are unacceptable.

“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”

The Tamale South lawmaker also questioned why the 2023 budget was silent on this policy presented by the Finance Minister in his recent address to the House.

“I want to ask how come this debt restructuring was not included in the 2023 budget,” he added.

Haruna Iddrisu wondered why the finance Minister restructuring the terms of a loan agreement without approval from parliament is contrary to the 1992 constitution.

The Government on Sunday announced a slash in interest payments for domestic bondholders to zero percent in 2023 and pegged 2024 interest payments at 5 percent

According to the government, there will be no haircut on the principal of bonds, adding that individuals with government bonds will have total investments upon maturity.

In a public address on Sunday, December 4, on the current economic situation, the Finance Minister, Ken Ofori-Atta said the government will ensure that people’s investments are safe.