A research fellow at the Institute of Fiscal Studies, Said Boakye, has painted a gloomy picture of Ghana’s economy should the debt restructuring fail to work.
The government has had to revise the terms of the Domestic Debt Exchange Programme(DDEP) following broad consultations with bondholders. However, some individual bondholders are still not satisfied. They want total exemption from the programme.
“The real depreciation would happen,” he added.
He said even though the bondholders are not responsible for the current economic challenges, they must be part of the solution.
“So, at the end of the day participating in some way to help fix the country’s fiscal problems is a sacrifice worth doing,” he added.
“As if I am speaking for the government, but I am speaking for the economy. I care less about the government because we were warning the government not to do what it was doing. Even though they justified that they borrowed those funds to invest, I don’t think so,” he said.
Some financial institutions such as the Ghana Association of Banks, Ghana Insurers Association, and Ghana Securities Industry Association have reached a consensus with the government regarding the terms of the DDEP.