DDEP: Majority Leader urges Gov’t to be more engaging, consultative with bondholders
Leader of the Majority Caucus in Parliament, Osei Kyei Mensah-Bonsu, has asked the government to be more engaging and consultative with individual bondholders in ots domestic debt exchange programme.
Speaking in an interview on Monday, January 16, the legislator remarked that government needs to be cautious in its approach in dealing with individual bondholders under the debt exchange programme, adding that, government should consider a possible exclusion of individual bondholders from the debt programme.
This is because, the debt exchange programme he noted, can “wipe out” the country’s middle class.
“What we talking about is that many of these bondholders also belong to the middle class and that’s where the major worry is.
“If we are wiping away the middle class that could be dangerous, so we need to have some further dialogue on this. I’m not sure government takes interest and joy in suppressing anyone no government will have any joy in doing that.
“So government thinks that this is the best way forward, however even if it is, we need to engage, reflect and then move on and that will encourage some people who have some doubt to better appreciate where we are,” he remarked.
Speaking further, the Majority Leader noted that Parliament was not briefed on the Domestic Debt Exchange Programme.
According to him, the House did not know of the move until its announcement.
The Suame MP who doubles as the Parliamentary Affairs Minister said even though there were engagements prior to the presentation of the budget, the Domestic Debt Exchange Programme did not feature.
“There were meetings before the budget came to be consummated and later on presented by the Finance Minister.
“So we had broad discussions, but the details were not known to us at the time, but some consultations went on as to where exactly we were as a nation.
But I am not too sure that this matter came up for discussion maybe the broad strokes were mentioned but not the details,” he stated in the interview.
Meanwhile, the Minority Caucus in Parliament led by Hon. Haruna Iddrisu, has called for the suspension of the domestic debt exchange programme.
In a statement issued on Monday, January 16, 2023, the legislator remarked that failure of the government to fully engage relevant stakeholders in the debt exchange programme has led to the present confusion and implementation of the programme.
Adding that, there should be deeper consultation and greater transparency about the programme.
According to the Minority Leader, the debt exchange programme is a risk to financial institutions in the country asserting, “Our banks and other financial institutions are still reeling after the infamous financial sector bailout. The Debt Exchange Programme will further exacerbate the already perilous financial sector. The last thing Ghanaians would want is a total collapse of the financial sector by a government which went haywire on a borrowing spree.
“The future sustainability of our insurance companies cannot be guaranteed under this poorly crafted Debt Exchange Programme. Indeed, the Debt Exchange Programme as proposed and implemented now cannot be in the interest of our financial institutions and insurance companies. It certainly is not in the best interest of Ghanaians.”
“The Nana Addo/Bawumia Government cannot continue to manage Ghana’s economy like a private entity. Ghanaians deserve to know how much is involved and how long the debt exchange will take. It is not just about people’s investment, but it is much more about people’s lives and livelihood. The Nana Addo /Bawumia Government should suspend the Debt Exchange Programme now!,” he added.
