Finance Minister, Ken Ofori-Atta, staunchly defended the government’s contentious decision to carry out a domestic debt exchange, highlighting the perceived benefits amid concerns from investors and bondholders.
Mr Ofori-Atta’s defense of the domestic debt exchange comes on the back of the decision by the coalition of individual bondholders to join pensioner bondholders in a protest against fears of a potential second round of domestic debt restructuring to fulfill IMF conditions.
The government’s debt restructuring policy, which included a reduction in interest payments on coupons, triggered a wave of protests, particularly from pensioners who felt their life savings were being adversely affected.
Despite the backlash, Ofori-Atta maintains that the earlier round of debt restructuring has yielded significant results, ushering in stability for the country’s economy.
“The domestic debt exchange program was undoubtedly a challenging ordeal for our nation. However, the evident need to pursue such measures is being vindicated by the stability we are currently witnessing. We remain grateful for the positive outcomes,” Ofori-Atta remarked during the exclusive interview.
When probed about the future trajectory of Ghana’s economy, Ofori-Atta acknowledged the unprecedented nature of the global economic landscape, stressing the significant transformations that have occurred since July 1 of the previous year.
Notably, he highlighted the successful engagement with the International Monetary Fund (IMF), which resulted in the country securing an unprecedented three times its quota, amounting to $3 billion.
Additionally, the finance minister pointed to the expeditious disbursement of funds, as well as improvements in inflation rates, currency stability, and Treasury bill rates.
While Ofori-Atta refrained from disclosing specific details regarding the next phase of Ghana’s IMF bailout rollout, he emphasized the necessity of maintaining faith and persevering through the challenges that lie ahead.
“There is substantial work ahead of us, and as Ghanaians, we must remain resolute in our pursuit. Sacrifices will be required, but they will pave the way forward,” he affirmed.
As uncertainties loom, the finance minister’s steadfast defense of the debt exchange program aims to instill confidence in Ghana’s economic prospects and reassure both investors and bondholders.
The nation’s path to financial stability and sustainable growth, however, will undoubtedly continue to face scrutiny amidst ongoing concerns over the potential implications of further debt restructuring.
BFTonline