Parliament wants Ofori-Atta summoned on Debt Exchange Programme
The Speaker of Parliament, Alban Bagbin has directed the Business Committee to “urgently” schedule, next Tuesday, the Minister of Finance to brief Parliament on the state of affairs including updates on domestic debt exchange programme (DDE).
It follows a statement by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa who prayed on the speaker to summon the finance minister to explain
“This is a matter of great concern and we cannot pretend, our constituents and even some of us have been affected, we need to be briefed, the minister for finance must appear before us and we must debate and agree the nature of this DDE -who should be exempted and what are the implications and full ramifications on the Ghanaian economy and the affected citizens” he said on the floor of parliament on Tuesday when parliament resumed from recess.
Minority Leader, Dr.Ato Forson indicated that millions of Ghanaians are currently having sleepless nights because of the possibility of losing their livelihood under the hurriedly and poorly designed Debt Restructuring Program which is a consequence of 6years of gross economic mismanagement and incompetence.
“Ghana’s financial sector including banks and insurance companies risk collapse as a result of the Domestic Debt Exchange, yet parliament is unaware of the government Debt Exchange Programme.” he said.
A Deputy Finance Minister, Abena Osei Asare stated that pension funds are not part of the exercise being done and added that the ministry will come before the House to brief parliament on the status of the DDE and the steps taken.
“In the budget of 2023, we sounded that we were going to come up with a domestic debt exchange and based on the budget that was approved, parliament gave us permission to spend compensation to a certain level, and capital expenditure and goods and services, and for my friends [on the otherside] to say we are now going to borrow these are funds that were approved for us to utilize previously and government is saying, I am engaging with you to make sure that, due to conditions in which I find myself now, I will not be able to discharge what initially I had agreed with you and [Mr. Speaker] let me put this on record that the pension funds is not part of this exercise that we doing. All these various bondholders we have been able to engage them. And we mentioned when we met leadership that we will come and engage Parliament, so my brothers and sisters are jumping the gun. The Minister of Finance will come to parliament to brief the House appropriately” she said.
Government launched this debt swap plan at the start of December as part of a plan to redress a spiraling economic crisis blighting the gold, cocoa and oil producer.
Days later, the International Monetary Fund reached a staff-level agreement with Ghana for a $3 billion rescue package that will only be approved with comprehensive debt restructuring.
Government has struggled to convince bondholders to register for the debt exchange programme, in part due to lack of clarity over its terms and concerns about profitability. In mid-January, Ghana extended the deadline to Jan. 31.
Several associations representing banks, insurers and capital market operators agreed new participation terms with the government last week.
