Cancel DDEP, try another debt restructuring model – NAGRAT
The National Association of Postgraduate Teachers (NAGRAT) has called on the government to cancel the domestic debt swap programme.
The government after securing a staff-level agreement with the International Monetary Fund (IMF) has been trying to get bondholders to subscribe to a controversial debt swap program, but has faced stiff opposition from various groups.
Retired bondholders for example have been picketing the Ministry of Finance since last week demanding a total investment exemption from the exchange program even though the government has proposed a 15% coupon rate on the 5-year maturity.
Talk to Citi News on the sidelines of the speech and prize giving at St Mary’s Senior High School 73rd, NAGRAT President Angel Carbonu asked the government to stop the domestic debt exchange program and explore alternative ways to solve the country’s economic challenges.
“Domestic debt exchange should not have started. It is a non-starter program. The government should find other innovative ways to balance itself. This debt exchange thing is strange to our economic lexicon, so it should not have started. Now look what is happening, the parents of this country who have sacrificed their lives today are those who are picketing the finance ministry. We will ask the government to suspend…to cancel the debt exchange program,” he said.
Angel Carbonu indicated that the economy will not be crushed and added that “there are other models [government] can explore.”
He further proposed a five-year moratorium on government spending as well as government cuts as the country seeks to emerge from economic challenges.
Meanwhile, Finance Minister Ken Ofori-Atta is scheduled to appear in Parliament on Thursday, February 16, 2023, to give details on the government’s debt swap programme.
The post Cancel DDEP, try another debt restructuring model – NAGRAT appeared first on Citinewsroom – Comprehensive News in Ghana.
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