Ken Ofori Atta, the minister of finance, has acknowledged that the debt exchange program, which was just inaugurated, is a crucial component of the government’s request to the IMF for an economic agreement.
He claims that in order to put the debt level on a sustainable course, the government is left with no alternative than to implement the debt restructuring scheme.
An IMF mission team is now in the nation to continue talks with the government about the post-COVID economic growth plan for the nation and any related policies and reforms that may be financed by a new IMF funding arrangement.
However, the finance minister emphasized that no bondholder will lose money under the planned scheme. He promised the stakeholders in the banking sector of government support to lessen the impact of the program on their operations while speaking to journalists to begin the domestic debt operations.
The Minister suggested Dr. Ernest Addison, Governor of the Bank of Ghana, and other heads of regulators would be entrusted with including stakeholders in the debt management program.
Ghana is asking the IMF for an economic program to help it with its finance and other problems with the balance of payments.
The government has undertaken a debt sustainability study as part of the agreement, and the results show that the country’s debt level, which topped 100% of GDP, is unsustainable, necessitating such action.
To prevent the detrimental effects on the banking industry and other areas of the economy, there are already calls for the government to offer a road map.
The World Bank and other development partners are on board to help the government in this respect, the Financial Minister noted.