The Minister for Finance has acknowledged that the debt exchange programme, which was just inaugurated, is a crucial component of the government’s request to the IMF for an economic agreement.
Mr. Ken Ofori-Atta said it is necessary to put the debt level on a sustainable course because the government is left with no choice than to implement the debt restructuring scheme.
In order to continue discussions with the government about the country’s post-COVID economic growth strategy and any related policies and reforms that might be funded by a new IMF funding arrangement, an IMF mission team is currently in the country.
However, the finance minister emphasised that no bondholder will lose money under the planned programme.
He assured the financial stability of the domestic debt operations when speaking to journalists.
The Minister intimated that the Bank of Ghana’s Governor, Dr. Ernest Addison, and other regulator heads will be entrusted with engaging stakeholders in the debt management initiative.
Ghana is asking the IMF for an economic programme to help it with its finance and other problems with the balance of payments.
The government has undertaken a debt sustainability analysis as part of the agreement, and the results show that the country’s debt level, which topped 100% of GDP, is unsustainable, necessitating such action.
To prevent the detrimental effects on the banking industry and other areas of the economy, there are already calls for the government to offer a road map.
The World Bank and other development partners are on board to support the government in this respect, the Financial Minister noted.