Debt Exchange: There Must Be A Compromise; Keep Engaging to Find A Way Out – Gabby tells MoF

Former Executive Director of the Danquah Institute Mr Gabby Otchere-Darko has asked the government, through the Ministry of Finance, to keep engaging investors on the Debt Exchange programme. 

The leading member of the governing party said there must be a way out which protects investment of individual bondholders.

“Let them keep engaging to find a way, like I said, to ease the burden on us holders. There must be a compromise.

“A way which protects if not our expected gains but the investments of individual bondholders without jeopardising what the debt exchange prog is meant to achieve,” he tweeted.

“What we are seeing with the mobilisation of agitation on individual bondholders poses a real and serious risk worse than what we witnessed when opposition to E-Levy succeeded in derailing an already shaky macroeconomic situation from 2021,” he said.

Mr Otchere-Darko further indicated that the debt exchange programme is voluntary for individual bondholders but a very necessary evil for our economy.

“Its success is critical to restoring macroeconomic stability, securing an IMF prog. It hits those of us holding bonds very hard. A straight no to it is no solution!

“If the no-compromise opposition to it wins, what then has been achieved? It may lead to national debt default. So what then happens to the value of your bonds after! Potentially worthless. If participation is low, we jeopardize resolving the economic crisis and hardships.

“I’m sorry but we have to face the hard/painful truths. We ain’t sitting pretty. Our focus must be on how the burden to individual bondholders may be possibly eased; but not to take the hardline position of simply saying no to participation. It will come back to hit us harder!” he said.