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Minority rejects government’s debt restructuring program

The government is replacing bonds that have previously been sold with new ones that have a more flexible interest payment schedule as a crucial component of the current negotiations with the International Monetary Fund to get $3 billion in assistance for Ghana’s economy.

However, Minority Leader Haruna Iddrisu stated that the program’s shape and structure are undesirable while speaking at a press conference on Monday.

Without fear of contradiction, let me clarify that we will not accept the form and structure of the debt restructuring outlined by Finance Minister Ken Ofori-Atta this morning.

The MP for Tamale South also questioned why the 2023 budget made no mention of the policies that the Finance Minister just outlined in his address to the House.

I want to know why the 2023 budget did not include this debt restructure, he continued.

Haruna Iddrisu questioned why it is against the 1992 constitution for the finance minister to change the conditions of a loan arrangement without receiving consent from the legislature.

The Government stated on Sunday that domestic bondholders’ interest payments would be reduced to zero percent in 2023 and set at five percent in 2024.

The government claims that there won’t be a haircut on bond principal and that holders of these securities would receive their entire investment at maturity.

The government will make sure that people’s investments are secure, according to Finance Minister Ken Ofori-Atta, who spoke in front of the public on the state of the economy on Sunday, December 4.

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