The minority caucus in Parliament has rejected the government’s debt exchange program, which aims to reduce the country’s debt to more sustainable levels.
The government is exchanging existing bonds for new ones with a more flexible interest payment plan as part of ongoing negotiations with the International Monetary Fund to secure $3 billion in economic support for Ghana.
Minority Leader Haruna Iddrisu, speaking at a press conference on Monday, said the program’s form and structure are unacceptable.
“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”
The Tamale South legislator also questioned why the Finance Minister’s recent address to the House was devoid of any mention of this policy.
“I want to ask how come this debt restructuring was not included in the 2023 budget,” he added.
Haruna Iddrisu questioned why the Finance Minister could change the terms of a loan agreement without the approval of parliament, which is a violation of the 1992 constitution.
The government announced on Sunday that interest payments for domestic bondholders will be reduced to zero percent in 2023, with interest payments remaining at 5 percent in 2024.
According to the government, there will be no haircut on bond principal, and individuals who own government bonds will have total investments when they mature.
In a public address on the current economic situation on Sunday, December 4, Finance Minister Ken Ofori-Atta stated that the government will ensure the safety of people’s investments.
