Debt exchange programme very necessary – NPP

The ruling New Patriotic Party (NPP) has tackled the Minority in Parliament over its criticism of the newly announced Debt Exchange programme.

The Minister of Finance, Ken Ofori-Atta on Monday, December 5, officially launched Ghana's Domestic Debt Exchange programme at a media briefing in Accra.

In an engagement with the media in Parliament after the announcement, Minority Leader Haruna Iddrisu indicated that they reject the programme.

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

Reacting to the stance of the Minority, the Director of Communications for the New Patriotic Party (NPP) Richard Ahiagbah says the argument by the NDC MPs is not convincing.

According to him, Ghana’s Debt Exchange Programme announced by the Finance Minister is very necessary.

“The NDC is not convincing in its argument against the difficult but necessary debt exchange programme,” the NPP Communications Director said in a Tweet.

He further argued, “I don’t hear alternative ideas. Pessimism is not how we will get out of this global crisis. We need leadership and this government is providing it. Let’s support government of Ghana.”

Under the Debt Exchange Programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity whilst coupon payments will be semi-annual.

While announcing the programme, Finance Minister Ken Ofori-Atta said the government is keen on restoring macroeconomic stability in the shortest possible time.

“Our commitment to Ghanaians and the investor community, in line with negotiations with the IMF, is to restore macroeconomic stability in the shortest possible time and enable investors to realize the benefits of this Debt Exchange,” Ken Ofori-Atta said.