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Explore external debt forgiveness, leave domestic market alone – Gov’t told
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1 year agoon
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Vida Essel-LampteyA Development Economist and Lecturer at the University of Ghana, Economic Department, Dr Adu Owusu Sarkodie has urged government to us a matter of urgency and necessity explore external debt forgiveness and let go of the domestic debt exchange programme.
That he said was because that will be a better option looking at the opposition that has greeted the domestic programme.
Dr Adu Sarkodie noted the government will be able to access the IMF programme with external debt forgiveness since it constitute a junk of government total debt, a whopping 55% of its debt.
“If government is successful with the debt forgiveness from the eternal front which amount to about 15billion, am not sure government will need any domestic debt exchange programme because that will bring us to every good level for us to get the IMF programme,”he said .
He said if that is successful government will have no need for the domestic debt exchange programme which have been met with stiff opposition.
“In my view, if government is struggling with the domestic debt exchange programme let them explore the external debt relieve. About 55% of our debt is coming from the external component so if government is successful with the external relieve , we will not even have this conversation. I think the domestic debt exchange programme will not even be needed,” he added.
“ So I want to suggest that government should really as a matter of urgency and necessity try explore the external debt relieve and leave the domestic bond holders alone.”
“In a simple way, explore the external ones and leave the domestic market alone if the domestic market is causing so many problems”.
Dr Adu Sarkodie made the suggestion on GhanaTonight on TV3 monitored by GhanaPlus.com on Wednesday, January 11.
He made the comment when contributing to the brouhaha that has greeted the government’s domestic debt exchange programme launched in December last year as part conditionalities for the $3billion IMF programme government is seeking.
Domestic Debt Exchange Programme
Government is yet to achieve a domestic debt exchange programme, a major component in the country’s negotiation with the International Monetary Fund, launched in December last year due to opposition from various stakeholders.
The programme which was initially meant to expire on Friday, December 30, 2022 has been extended twice already to January 6, and finally, January 16 but government is yet to make any head way.
The first to reject the programme and called for their exclusion was the Pension Fund, a fund which host the contributions of Ghanaian workers and disburse them when they retire from active service.
Government upon several pressures yielded to the call but included individual bond holders , who were initially excluded.
The have also objected vehemently.
Source: GhanaPlus.com
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