A leading figure in the governing New Patriotic Party (NPP), Gabby Otchere Darko says the refusal of individual bondholders to accept government’s debt exchange program is likely to worsen the country’s economic crisis.
He is of the belief, the widespread rejection of the program by the bondholders will not mean well for the country.
The private legal practitioner, wants the individual bondholders to soften their stance.
In a series of tweets, Mr. Otchere Darko said the program is necessary to save the economy and that affected persons must bear with the government.
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Ghana is in a very difficult place. What we are seeing with the mobilisation of agitation on individual bondholders poses a real and serious risk worse than what we witnessed when opposition to E-Levy succeeded in derailing an already shaky macroeconomic situation from 2021.
The debt exchange programme is voluntary for individual bondholders but a very necessary evil for our economy. Its success is critical to restoring macroeconomic stability, securing an IMF prog. It hits those of us holding bonds very hard. A straight no to it is no solution!
If the no-compromise opposition to it wins, what then has been achieved? It may lead to national debt default. So what then happens to the value of your bonds after! Potentially worthless. If participation is low, we jeopardize resolving the economic crisis and hardships.
I’m sorry but we have to face the hard/painful truths. We ain’t sitting pretty. Our focus must be on how the burden to individual bondholders may be possibly eased, but not to take the hardline position of simply saying no to participation. It will come back to hit us harder!