Kwasi Pratt Jnr, Managing Editor of the Insight newspaper, has revealed that the Ghana’s Domestic Debt Exchange Programme is not leading to the revival of the economy.
The Minister for Finance, Ken Ofori-Atta launched Ghana’s Domestic Debt Exchange Programme with the hope of restoring the nation’s capacity to service its debt on 5th December 2022.
Speaking at the launch, Mr. Ofori-Atta said the objective of the Programme is “to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of new bonds to be issued by the Republic.”
Mr. Ofori-Atta said it was time for his ministry and the government to take such drastic measures now because “the government may not be able to fully service its debt down the road if no action is taken.”
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“The Debt Sustainability Analysis (DSA) demonstrated unequivocally that Ghana’s public debt is unsustainable and that the Government may not be able to fully service its debt down the road if no action is taken.” Indeed, debt servicing now absorbs more than half of total government revenues and almost 70% of tax revenues, while our total public debt stock, including that of state-owned enterprises and all, exceeds 100% of our GDP. “This is why we are today announcing the debt exchange, which will help in restoring our capacity to service debt,” Ofori Atta added.
Speaking to the host of Atinka FM’s AM Drive with host Kaakyire Ofori Ayim, Kwasi Pratt said the government is only paying debts, which cannot be described as “economic revival.”
According to Kwasi Pratt, Ghana’s economy is completely dead.
“The purpose of the whole programme was to restore the nation’s capacity to service its debt.” The purpose of the payment of debts is not to improve agriculture, the employment situation, or our roads. The sole purpose was to pay debts. “Paying off debt is not reviving the national economy,” Kwasi Pratt said.
Ghana | Atinkaonline.com | Vivian Adu
