Executive Director of the Media Foundation for West Africa (MFWA) Sulemana Braimah has said that although every country is facing challenges, Ghana’s problems are also compounded by bad leadership.
In a tweet on the current challenges facing Ghana, he said “There’s undoubtedly a global economic crisis that’s impacting all countries.
“There’s also no doubt that Ghana is suffering from an additional major crisis of bad leadership that has made our country the epicentre of the global crisis. Let’s all speak up because Democracy [doesn’t like noise]!”
His comments come at a time the government has introduced the Debt Exchange programme as part of the measures to resolve the economic challenges.
The Finance Minister Ken Ofori-Atta said the programme will help in restoring the Ghanaian economy back on the right direction in order to create jobs and protect income of the people.
Launching the programme in Accra on Monday December 5, he said the government expects an overwhelming support for the programme.
He said after citing best practices in countries such as Greece, that the debt exchange programme “is an orderly way to put our economy back on track in order to create jobs, protect income and restore hope to the Ghanaian people.”
“The govt expects overwhelming support for this exchange programme,” he stressed.
He further dismissed speculations that there is going to be haircuts following the programme.
“There will be no haircuts,” he said.
He further justified the introduction of the debt exchange programme.
He stated that it has become necessary because of the enormous challenges with debt servicing.
He revealed that debt servicing is consuming “almost of government’s revenue and also 70 per cent of tax revenue.”
“Which is why we are announcing this to restore our capacity to service debt,” he stressed.
Under the debt exchange programme, he said, ” domestic bond holders will be asked to exchange their instruments for new ones.”
He added “Existing domestic bonds as of 1st December will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.”
The annual coupons on all of these bonds will be set at 0 % in 2023, 5% in 2024 and 10% from 2025 until maturity.
“Coupon payments will be semi annual ‘ he stressed.