Embattled Finance Minister Ken Ofori-Atta has stated that the government’s Debt Exchange Programme is a requirement of the International Monetary Fund (IMF).
According to Mr. Ofori-Atta, the DEP was required as part of the requirements for the government to receive any type of economic assistance from the Fund.
He also stated that the government has no choice but to embark on the debt restructuring program in order to reduce the debt level to a manageable level.
Speaking to journalists in Accra, the minister stated that the start of domestic debt operations will not result in individual bondholders losing their funds.
Mr. Ofori-Atta also assured financial sector participants of the government’s support in minimizing the program’s impact on their operations.
An IMF mission team is currently in the country to continue discussions with the authorities on the country’s post-COVID economic growth strategy, as well as related policies and reforms that could be supported by a new IMF lending arrangement.
Ghana is seeking an IMF economic program to address its balance of payment and other financing issues.
As part of the agreement, the government has begun a debt sustainability analysis, which indicates that the country’s debt level of more than 100% of GDP is unsustainable, necessitating such action.
There have already been calls for the government to provide a road map to avoid negative consequences for the financial sector and other sectors of the economy.
The Financial Minister stated that the World Bank and other development partners are working with the government on this.
