Domestic Debt Exchange programme: IMF deal will be at risk if

A Financial Analyst and Chief Operating Officer of Dalex Finance,Mr Joe Jackson has said Ghana’s deal with the International Monetary Fund (IMF) will be at risk if government is not able to push through with it domestic debt exchange programme lunched on December last year.

He made the comment on GhanaTonight aired on TV3 on Wednesday, January 11 monitored by GhanaPlus.com.

“If you remember, the debt change programme is not an end to itself. It is a requirement for us to get approval for the IMF programme .. So if we don’t get this debt exchange through then we will not be able to achieve our debt sustainability, then the IMF programme will either be delay or may even be at risk,” Joe Jackson said.

“So the issue is this up until now the market have been treating us kindly because everybody’s assumption is that somewhere in February, March, IMF is coming through. If we don’t achieve our deadlines, if we have to stretch them again, then the IMF will not come through when its due and then all pegs are off and then the chaotic debt reforms that we have been trying to present will now happen with all the dire consequences of not being able to access any funds anywhere,”

Mr Jackson prayed government engage stakeholders immediately to save the country from what he described as dire consequences.

“I just pray that the powers that be are listening and that they take the current request from groups as an opportunity to engage quickly and use this opportunity to negotiate acceptable terms so that the domestic exchange programe can go ahead if not on schedule at least by the end of this month,” he added.

Domestic Debt Exchange programme

The first to reject the programme called for their exclusion from the pragramme was the pension Fund, which host the contribution of Ghanaian workers and support them when they retire from active service.

Government upon several pressures yielded to the call but included individual bond holders who have also objected vehemently.

It is only 4days to the expiration date government set to complete the debt exchange programme but yet to make any headway with the opposition.

However, Joe Jackson said government will have no money at all to redeem its debts to them if they fail to be on the same page with government.

Source: GhanaPlus.com