Ofori-Atta’s Debt Restructuring Program Is Unacceptable: Minority Challenges

The debt exchange proposal made public by Finance Minister Ken Ofori-Atta, according to Minority Leader in Parliament Haruna Iddrisu, is a form of debt restructuring.

He argued that the program’s announced shape and organization are undesirable.

Mr. Iddirsu remarked during the press conference that  “Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”

Furthermore, the honorable member of parliament added “The concern of the Minority is that the announcement by the Honorable Minister of Finance this morning has dire consequences on the government and Ghana’s financial sector.”

“It has dire consequences on jobs and dire consequences on pensions and dire consequences on loans who are compelled by legislation to investigate at least 75 percent of government instrument and government bonds.

We expected the government to have thoroughly engaged and consulted before making this far-reaching announcement,” he added.

Background

On Monday, December 5, the debt exchange program was introduced in Accra by Finance Minister Ken Ofori-Atta.

Interestingly, he claimed that this program’s goal is to reduce debt in the most open, effective, and quick way possible.

On that note, he stated as follows:

“The Ghanaian government has been trying hard to reduce the effects of the domestic debt exchange on holders of government bonds by way of an Exchange offer in this context.”

“as we promised. Let me repeat this fact as plainly as I can, in this debt exchange individual holders of domestic bonds are not affected and will not lose the face value of their investments.

So let us remove any doubt and discard any speculation that the Government is about to cut your retirement savings or the notional value of your investments. That is not the case.” he pointed out.

Conclusion

So dear cherished readers, what’s your take on the new debt exchange program? Share your thoughts with me in the comments section below.

Having said much, stay tuned to Enewsghana for more interesting news updates.

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