The Director of Communications for the New Patriotic Party (NPP) Richard Ahiagbah has mentioned that the principle opposition National Democratic Congress (NDC) particularly its Members of Parliament are not advancing convincing arguments against the Debt Exchange programme introduced by the Finance Minister.
He says he does hear any various concepts being proposed by the opposition occasion relative to the programme.
“The NDC is not convincing in its argument against the difficult but necessary debt exchange programme,” he mentioned.
“I don’t hear alternative ideas. Pessimism is not how we will get out of this global crisis. We need leadership and this government is providing it. Let’s support government of Ghana,” he tweeted.
Following the launch of the programme, the Minority Leader in Parliament Haruna Iddrisu mentioned that the debt change was really debt restructuring.
He mentioned the shape and construction of the programme introduced are unacceptable.
Addressing a press convention Mr Iddirsu mentioned “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 mentioned, was to alleviate the debt burden in a most
clear, environment friendly, and expedited method.
In this context, by the use of an Exchange provide, the Government of Ghana has been working laborious to attenuate the impression of the home debt change on buyers holding authorities bonds, he mentioned.
In explicit, he added, it does not embed any principal haircut on Eligible Bonds, “as we
promised. Let me repeat this reality as plainly as I can, on this debt change particular person holders of home bonds are not affected and can not 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 chop your retirement financial savings or the notional worth of your investments. That is 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 change for brand spanking new Ghana bonds with a coupon that steps as much as 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 quick 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 those 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
