The minority in Parliament has called on the government to suspend the debt exchange program immediately.
Minority leader, Haruna Iddrisu, addressed a press conference in Accra today and said the program is headed for failure since proper consultations were not held before its establishment.
“It is already failing and promises to be a failure,” Minority Leader Haruna Iddrisu said at a press conference.
The Tamale South Member of Parliament (MP) said the Programme will only further exacerbate the already perilous financial sector, which was wounded by the 2017 clean-up by the government.
He minced no words by saying the Programme has been poorly-crafted and the earlier it is suspended the better.
“He should suspend the initiative and engage in deeper consultation and allow for greater consultations,” the Minority Leader demanded of President Akufo-Addo.
Under the Domestic Debt Exchange Programme, domestic bondholders have been asked to exchange their instruments for new ones.
Existing domestic bonds will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.
The annual coupon on all of those bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity with coupon payments done semiannually. This generated a lot of controversy as these bondholders have petitioned not only the Minister of Finance, Ken Ofori-Atta, but some key statesmen to exclude their bonds from the Programme.