Suspend The Debt Exchange Program Immediately – Minority To Government

The Minority has called on President Nana Addo Dankwa Akufo-Addo and the government to suspend the controversial debt exchange program with immediate impact.

In a public interview addressed by the Minority Leader, Haruna Iddrisu in Accra, he said the program is bound to fail if proper consultations are not held.

“It is already failing and promises to be a failure,” Minority Leader Haruna Iddrisu said at a public interview.

The Tamale South Member of Parliament (MP) said the Program will only further exacerbate the already dangerous financial sector, which was injured by the 2017 clean-up by the public authority.

He minced no words by saying the Program has been inadequately 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 Program, 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.

READ: Government Extends Debt Exchange Program Deadline To January 31st

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 Program.