DDEP: Gov’t not to revise debt programme despite labour unions’ agitations – Dep. Finance Chief
Deputy Finance Chief, John Kumah, has said government will not review its Domestic Debt Exchange Programme (DDEP) despite agitations from the various labour unions in the country.
Speaking in an interview on Wednesday, the Deputy Finance Chief averred the DDEP is imperative as it will help revive the Ghanaian economy.
“It’s a very difficult situation but the institutions must understand that for their bonds and interests to do well, we need a strong macroeconomic environment.”
“And this is a temporary situation we need to go through in order to revive it [economy]. So, unfortunately, it’s the price we all have to pay to get an effective and strong bond market for the moment,” said the Mr Kumah.
The Deputy Finance Chief however, assured the government has already engaged direct bondholders and will also engage in direct bondholders on the programme.
“The institutions that are at the moment agitating are not direct bondholders, the unions and associations claim that they have traced their pensions through the pension fund, It’s not the pension funds [managers] themselves who are complaining. So we have done extensive engagement for direct bondholders but we will continue engagement with indirect bondholders who fear for their investments,” he said.
“Government has set up a financial stability fund which will continue to provide financial support to institutions that may have the need for it including the pension funds,” he added.
Most labour unions in the country have opposed government’s debt restructuring programme requesting for exclusion from the programme as it will negatively impact the pensions of their members.
Also, industry players such as the Ghana Insurance Association (GIA), has also raised concerns about its inability to pay claims to policyholders should government go ahead with the debt restructuring programme which the Association expects to significantly impact the liquidity position of its members.
