Joe Jackson warns of dire consequences if the domestic debt exchange programme does not push through

A Financial Analyst and Chief Operating Officer of Dalex Finance, Mr Joe Jackson has warned there will be dire consequences if government proposed domestic debt exchange programme is not met and also on time.

He said the country’s deal with the International Monetary Fund will delay or will be at risk entirely and that would have more negative impact than anticipated.

Joe Jackson was speaking on GhanaTonight on TV3, monitored by GhanaPlus.com on Wednesday, January 11.

“If you remember that the debt exchange 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 programme 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”.

There will be chaotic debt reforms if we don’t the IMF loan – Joe Jackson

According to him, Ghana is currently enjoying some fair treatment from the market because of the anticipation of the IMF programme but things could get out of hand owing to any further delays in government’s negotiation with the fund.

Joe Jackson has therefore, appealed to government to as a matter of importance engage all affected groups for an acceptable terms to enable the programme push through.

“ 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,” Joe Jackson said

“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

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, 2023 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.

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

Source: GhanaPlus.com