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It Is An Orderly Way To Restore The Economy: Ofori Atta on Debt Exchange Program
According to Finance Minister Ken Ofori-Atta, the debt exchange program, which the government unveiled in the 2023 budget, will contribute in putting the Ghanaian economy back on track so that employment can be created and people’s incomes are protected.
On Monday, December 5, he announced the program’s launch in Accra. To that effect, he stated that the government anticipates resounding support for the initiative.
The debt exchange program, he said, “is an orderly method to put our economy back on track in order to create jobs, protect income, and restore hope to the Ghanaian people,” citing best practices in nations like Greece.
In addition, he stressed saying, “The govt expects overwhelming support for this exchange program.”
Furthermore, he denied rumors that everyone will get haircuts after the seminar.
To that effect, he iterated saying,“There will be no haircuts.”
Also, he provided more justification for the start of the debt exchange scheme. On that note, he claimed that due to the significant difficulties in debt servicing, it has become imperative.
According to him, debt service costs “nearly all of government revenue and almost 70% of tax revenue.”
“Which is why we are announcing this to restore our capacity to service debt,” he pointed out.
Moreover, he iterated saying“domestic bond holders will be asked to exchange their instruments for new ones as part of the debt exchange program.
“As of the first of December, existing domestic bonds will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.”
All of these bonds will have yearly coupons that are 0% in 2023, 5% in 2024, and 10% from 2025 until maturity,” the finance minister added.
Read the full statement below:
Conclusion
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