Government Debt Exchange Program, shouldn’t the Finance Minister Resign?

It has come to our attention that while Ghanaians were quietly observing their Sabbath on Sunday 04.12.2022, the finance minister Hon. Ken Ofori-Atta clandestinely snuck under the cover of darkness to impose future hardships on Ghanaians and rob them of any chance of a bright future. Indeed, we do not know which is more appalling, that the minister chose to defile the holy Sabbath or that he chose that day to peddle falsehood and balm everything and everyone except the true cause of Ghana’s economic woes i.e., himself. Mr. Minister, for the avoidance of doubt, let it be made clear to you that you are the cause of the suffering of Ghanaians, everyone knows this and you are either living in denial or pretending not to know.

The minister started his address on Sunday by inviting domestic bondholders to a voluntary debt exchange. Mr. Minister, to use the word voluntary means that there is an alternative that these bondholders can opt into if they do not prefer your proposed solution. Please, where is that alternative? If the bondholders do not want your offer, are you daring them to take the state (Ghana) to court? With such a unilateral approach in dealing with this debt exchange, what will happen to the confidence in the government of Ghana bonds moving forward even after this impasse? The only bright side to your address on Sunday is that you finally came around to accepting that Ghana’s debt is unsustainable and that you have run the country to the ground. Mr. Minister, we are where we are because of your posture as a person in dealing with everything as you exhibited during the passing of the E-Lavy.

In the address of the minister, the minister said the debt exchange was arrived at in a consultative process so that it can be done in an orderly manner. Mr. Minister, please tell us who you consulted. If indeed you arrived at this through a consultative process, why are the industry players protesting and rejecting your proposed solution? It is rather curious that during your formal announcement of the debt exchange on Monday, the members of the committee you set up to oversee it were absent. Did you appoint them just for the public show of it or it is the case that they disagree with what you actually announced and so did not want to be associated with it?

Finally, Hon. Minister, you, the president, and your communicator have repeatedly insisted that there will be no haircut in your debt exchange program. Are you aware that due to the current economic environment and the decision by the security and exchange commission (SEC) to switch to mark-to-market valuation of portfolios, investors have already seen the values of their investments including their principal eroded? In the midst of all this, you chose to exempt only individual investors in your debt exchange program when you know very well that a majority of Ghanaians have their investment in collective investment schemes which are classified as institutional investors. Hon. Minister, please who are these individual investors you’re seeking to protect? We know that per the requirements, only very rich individuals can invest in bonds as private investors which means that you have chosen to protect a few rich individuals at the expense of the suffering Ghanaians. Never have Ghanaians been visited with such callousness and insensitivity. Mr. Minister, we’re tired. Please resign now and give Ghana a chance to survive.

Thank you

Albert Allan Dakyie

Deputy Chapter secretary.

NDC Germany