BoG warns of substantial revenue losses due to debt exchange programme
The Governor of the Bank of Ghana, Dr. Ernest Addison, has provided a glimpse into the forthcoming Bank of Ghana (BoG) report, which is poised to reveal a significant decline in revenue for the country.
The blame for this substantial loss is being squarely placed on the implementation of the Domestic Debt Exchange Programme (DDEP), an initiative that has left its mark on the nation’s fiscal health.
During his appearance before the Public Accounts Committee of Parliament, Dr. Addison acknowledged the delay in releasing the report, citing the extensive work undertaken by auditors to assess the implications of the DDEP.
The government’s debt exchange maneuver has had far-reaching effects, given that most banks had extended loans to the government through various financial instruments.
The DDEP, which recently concluded with the inclusion of cocoa bills and dollar-denominated bonds, compelled the Bank of Ghana to request additional time to carefully examine the situation and compile a comprehensive statement.
Dr. Addison was forthcoming about the anticipated outcome, affirming that the Bank of Ghana is expected to register a significant loss in 2022.
Introduced in December 2022, the Domestic Debt Exchange Programme was instrumental in Ghana’s quest to restructure its burgeoning debt and served as a prerequisite for securing a $3 billion bailout from the International Monetary Fund (IMF).
Despite facing vehement opposition and discontent from various stakeholder groups, the government ultimately managed to execute the programme.
The impending release of the BoG report has aroused considerable interest, as it promises to shed light on the extent of the revenue losses and provide deeper insights into the economic ramifications of the DDEP.
This revelation serves as a reminder of the formidable challenges confronting Ghana’s financial landscape, while underscoring the ongoing efforts to grapple with the country’s debt situation within a complex economic environment.
