Ghana’s economy is in a big hole; the financial sector failed; banks collapsed – Assibey-Yeboah
Former New Patriotic Party (NPP) Member of Parliament for New Juaben South, Dr Mark Assibey-Yeboah has indicated that Ghana’s economy is currently in a deep mess.
He said the struggling economy led to the failure of banks and the entire financial sector.
Speaking on Business Focus with Paa Kwasi Asare on TV3 on Monday 16 January, Dr Assibey-Yeboah who chairs the 7th Parliament’s Finance Committee said “Now, we are in a hole, you have individual bondholders who will be affected, the financial sector will be crushed. Now let me tell you, where we are as a country, this is not the time to massage the problem, the banks, I don’t want to mention names, some will collapse.
“Let’s say that you are a bank and you are experiencing government bonds with a value of GHS2billion. If you have 20 percent, which is 450Million Cedis in interest payments you forgot , do you know what you will do for the balance? So the banks will dismiss people.
Regarding the Domestic Debt Exchange, he predicted that the deadline would be extended.
In his view, the steps that the government should take to ensure a successful program have not been implemented.
On Monday 16 January, the government again extended the Domestic Debt Exchange Program (DDE).
This makes it the third extension after agitation among individual bondholders to enter the Program.
The decision allows the government to be more involved with the bondholders.
The Government initially extended subscription to the Program from Friday, December 30, 2022 to Monday, January 16, choosing the next day as the Announcement Date.
According to the schedule, Tuesday, January 24 is scheduled for the completion of the invitation.
However, on Monday, January 16, the government announced again that the deadline would be Tuesday, January 31.
Dr. Assibey-Yeboah who is the chairman of the Finance Committee in the 7th Parliament said “First, we were told that individual bondholders will not be part of the debt exchange. People have planned their lives around the bonds they hold and then suddenly, on the 31st of December, you sneak this in and say that now, individual bondholders are part.
“Because we all celebrate Christmas, we ignore it.”
He added, “This is the money I’m looking for and someone voted. You told me that individual bondholders will not be part of Why are you including individual bondholders? Have you involved individual bondholders? You haven’t. That’s why I said, the deadline will be added back in. Necessary consultations, difficult decisions, will not be made.
Individual bondholders have expressed dissatisfaction with the Program, accusing the government of failing to participate.
He petitioned the Minister of Finance, Ken Ofori-Atta, to exclude him from the Programme.
At the umbrella body Ghana Individual Bondholders Forum (IBF), the bondholders accused the Minister of Finance and President Nana Addo Dankwa Akufo-Addo of changing and not keeping their promises.
“Sir, don’t let it be said that during your tenure, your policies are poor the citizen the main duty to the country is service and love through hard work and taxes.
“Your DDE is as proposed for Individual Bondholders take away our freedom to save ourselves, make a mockery of our hard work, and rob us. legally owned property. None of these reflect the principles of good governance.
He has offered to provide his expertise to help the government deal with the economic problems found in the country.
Meanwhile, the Minority in Parliament called on President Akufo-Addo to immediately suspend the Program and begin extensive engagement.
The caucus said the government should hold an economic dialogue as part of its engagement before considering reintroduction.
By Laud Nartey|3news.com|Ghana
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