Former Deputy Managing Director of the National Investment Bank (NIB), Alfred Thompson has stated that predominant opposition are unable to give alternative ideas after rejecting the Debt Exchange programme introduced by the Finance Minister Ken Ofori-Atta.
He questioned what the ideas of the National Democratic Congress (NDC) are in managing the economic system.
Speaking on the Big Issue with Berla Mundi on TV3 Tuesday December 6, Mr Thompson urged all Ghanaians to help the programme.
“I am pleading with everybody to support this just to bring our economy back on track. If we want to bring the economy back we all have to be in this together,” he stated.
He added “You ask the NDC what their alternative measure is, but they they cant give. the opposition couldn’t give any alternative.”
Following the launch of the programme, the Minority Leader in Parliament Haruna Iddrisu stated that the debt trade was truly debt restructuring.
He stated the shape and construction of the programme introduced are unacceptable.
Addressing a press convention Mr Iddirsu stated “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.”
He added “The concern of the Minority is that the announcement by the Honorable Minister of Finance this morning has dire penalties on authorities and Ghana’s monetary 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 per cent of government instrument and government bonds. We expected government to have thoroughly engaged and consulted before making this far-reaching announcement.”
The Finance Minister Ken Ofori-Atta launched the programme in Accra on Monday December 5.
The goal of this programme, he stated, was to alleviate the debt burden in a most
clear, environment friendly, and expedited method.
In this context, by means of an Exchange supply, the Government of Ghana has been working onerous to reduce the influence of the home debt trade on buyers holding authorities bonds, he stated.
In specific, he added, it doesn’t embed any principal haircut on Eligible Bonds, “as we
promised. Let me repeat this reality as plainly as I can, on this debt trade particular person holders of home bonds aren’t affected and won’t lose the face worth of their investments. So allow us to take away any doubt and discard any hypothesis that the Government is about to lower your retirement financial savings or the notional worth of your investments. That is just not the case.
“As already introduced, Treasury Bills are utterly exempted, and all holders can be paid the complete worth of their investments on maturity. There can be NO haircut on the principal of bonds. Individuals who maintain bonds may also not be affected in any respect.
“Our home debt operation entails an trade for brand spanking new Ghana bonds with a coupon that steps up to 10% as quickly as 2025 (with a primary curiosity cost in 2024) and longer common maturity. Existing home bonds as of 1st December 2022 can be exchanged for a set of 4 new bonds maturing in 2027, 2029, 2032 and 2037.
“Predetermined allocation ratio are as follows: 17% for the brief bonds, 17% for the intermediate bond, 25% for the medium-time period bond and 41% for the lengthy-time period bond. The annual coupon on all of these new bonds can be set at 0% in 2023, 5% in 2024 and 10% from 2025 till maturity.
“Coupon payments will be semi-annual. For emphasis, this domestic debt exchange programme will not affect individual bondholders.”
By Laud Nartey|3news.com|Ghana
Source: 3news.com
