Steps are being taken to mitigate the impact of the Domestic Debt Exchange Programme – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has given the assurance that his government will protect the financial sector from the impact of the Domestic Debt Exchange Programme (DDEP).

Government resorted to the programme last year as part of efforts to meet the conditions of the International Monetary Fund (IMF) to secure a support programme to address the country’s economic woes.

Speaking at the May Day celebration event held on Monday, May 1, at Bolgatanga, the President said every necessary step is being taken to mitigate the impact of the Domestic Debt Exchange Programme on the financial sector.

“We are also very much aware of the impact of the Domestic Debt Exchange Programme on the domestic financial sector, and steps are being taken to mitigate the impact of the Domestic Debt Exchange Programme on the sector.

“As has been announced by the Finance Minister, we are establishing the Ghana Financial Stability Fund (GFSF) to provide, amongst others, solvency and liquidity support to eligible financial sector institutions, which may be affected by the Domestic Debt Exchange Programme,” President Akufo-Addo said.

In addition, the President said the Bank of Ghana and the regulators in the financial sector space have provided some regulatory reliefs to support affected institutions.

He further stressed that Government, through the Financial Stability Council, will monitor continuously the impact of the Domestic Debt Exchange Programme on financial institutions to enable it to take remedial action, if and when necessary.

“This would ensure that measures put in place to safeguard incomes, deposits, pensions, investor funds and assets are effective,” President Akufo-Addo argued.