Debt exchange: Ghana’s economy is sitting on time bomb waiting to explode – Pianim

Debt exchange: Ghana’s economy is sitting on a time bomb waiting to explode – Pianim

Ghana’s economy is bankrupt, renowned economist, Mr. Kwame Pianim has said.

In his view, the economy is sitting on a time bomb waiting to explode.

Mr Pianim said this was due to policy measures including the domestic debt swap program introduced by Finance Minister Ken Ofori-Atta.

The government announced that in a program that has met with strong resistance from most Ghanaians including members of the Individual Bond Holders Forum (IBF), individual bond holders must submit a “voluntary” arrangement to exchange their domestic bonds for new benchmark bonds.

Mr. Pianim who is also the founding father of the ruling New Patriotic Party (NPP) told Paa Kwasi Asare on TV3 in an interview on Wednesday January 11 that “For this government to allow Ken Ofori-Atta to sit in front of Ghanaians to make this proposal. …

“If Ken is real, when the Attorney General comes with a legal opinion, which in the Commonwealth has the power of a high court order, he will take this document and go to the International Monetary Fund (IMF). legal, not constitutional.

He added, “…Ken Ofori-Atta said, let’s do this program but it’s not well thought out, it’s not well thought out. This exchange program is like a time bomb that Ken has put in this economy. For the next 30 to 40 years, we will suffer.This is a ticking time bomb because they are taking billions of Cedis out of this economy.

“Government instruments, T-Bills and government bonds are risk-free, so insurance companies and banks are required not to invest because they are risk-free.

“Ken Ofori-Atta has a reputation that cannot be underestimated in our history as the man who made government bonds risk-free. He will go down as the only Minister of Finance who caused this country to go bankrupt. That’s where we are.”

Meanwhile, a group of individual bondholders is poised to sue the Government of Ghana for being included in the debt swap program after it was first released.

The group has issued an invitation to all eligible bondholders to join the class-action which is expected to be submitted next week.

“These decisions and actions are reprehensible, and the Government cannot be allowed to use its power to impoverish Ghanaians. We hereby invite eligible bondholders who seek to protect their interests to join the class action,” the invitation read.

About 50 bondholders have registered to be part of the lawsuit a few hours after the notice to join was shared on social media platforms, Convener of the group Kwadwo Agyapong told 3Business.

By Laud Nartey|3news.com|Ghana

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