Accra, Feb 6, GNA – The Government says non-participation or a lower-than-expected turnout for the Domestic Debt Exchange Programme (DDEP) can prolong efforts to resolve the country’s economic crisis.
“In addition, the prospects of international financial support and other financial assurances would be jeopardised,” said the Minister of Finance, Mr Ken Ofori-Atta when he affirmed the February 7 deadline for suscribing to the DDEP.
Speaking in a televised update on the economy, the Minister said non participation could also put further strain and stress on the Government’s capacity to honour key commitments.
He has, therefore, appealed to Bondholders to consider the merit of the enhanced DDEP, as well as the need for economic stability and sign up by Tuesday, February 07.
Mr Ofori-Atta said:”Let every Ghanaian be encouraged that the DDEP will bring us to a place of stability, economic recovery and transformational growth. “
The DDEP is informed by a Debt Sustainability Analysis, which indicates that Ghana’s public debt has become unsustainable; and that debt servicing accounts for more than half of total government revenues and almost 70 percent of tax revenues.
It also indicates that total public debt stock, including that of State-Owned Enterprises and statutory funds, exceeds 100 percent of GDP.
The Minister said the Government on its part had resolved to undertake all necessary fiscal adjustments that would ensure that sacrifices “pay-off and collective good upheld” .
“Let each and every one play their part. These are difficult times, no doubt, but if we hold on together, we can and we will emerge from this more resilient and more united than before, ” he said.
Government in December 2022, announced the DDEP to help restore the country’s capacity to service its debt and meet other expenditure obligations.
The government has extended the deadline on several occasions to deepen engagement and consultation with various stakeholder groups to avoid non participation.
GNA