The Policy Initiative for Economic Development (PIED) has said the government must tread cautiously in an attempt to restructure Ghana’s domestic debt.
The Finance Minister Ken Ofori-Atta has said the government is considering reorganising part of its US$19 billion local debt in order to secure a loan from the International Monetary Fund.
However, market watchers believe the changes may impose losses in capital and interest payments on investors.
The president of PIED, Daniel Amartey, said the government must carry out the exercise in a manner that will not erode investor confidence.
“Ken Ofori-Atta (Hon. Minister of Finance) and his economic management team at a press conference held on Wednesday 27 September 2022, vehemently dismissed allegations that the ongoing negotiations between the government of Ghana and IMF focus on restructuring the country’s domestic debt.
“We, at the Policy Initiatives for Economic Development, struggled to believe the Hon. Minister’s assertion on grounds that a similar attitude was put up during the introduction of E-Levy and subsequent denial of resorting to IMF bail-out, which the government eventually did,” he said in a statement.
“Our position, therefore, is that any possible restructuring of the domestic debt must be done in a manner that will not diminish investors as well as the citizens’ confidence in our financial system and the economy as a whole. We strongly advise the Ministry of Finance to engage all critical stakeholders as well as actors in the financial sector that could be affected directly and indirectly,” the statement added.
Below is the full statement
Fred Dzakpata
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