It is illegal, unconstitutional if indeed the IMF is engineered to exchange debt – Pianim
It will be against the law and totally against the constitution if the International Monetary Fund (IMF) orders the Minister of Finance Ken Ofori-Atta to introduce a debt exchange program as part of the conditions that must be met for the program in the Fund to be completed, a renowned economist Mr. Kwame Pianim said.
Mr. Pianim who is not happy with the debt exchange program said that the policy threatens the nature of the risk fee from Government Instruments and Treasury Bills (T-Bills).
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.
Some analysts believe that the program is a condition given by the Bretton Woods Institution to Government officials as part of the negotiations for a deal.
Mr. Pianim who is also the founding father of the New Patriotic Party (NPP) said in an interview with TV3’s Paa Kwasi Asare 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 denied in our history as the man who made government bonds risk-free. He will go down as the only Minister of Finance to bankrupt this country. That’s where we are.”
By Laud Nartey|3news.com|Ghana
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