Ranking Member on Parliament’s Finance Committee, Dr. Cassiel Ato Forson says the country’s current debt status cannot avoid a restructure particularly when the government is seeking an IMF bailout.
The Former Deputy Finance Minister noted that the country’s debt position has been tolerated long overdue such that it is now unsustainable.
Speaking on Monday, the Ajumako Enyan Esiam MP said the debt restructuring situation presents dire consequences to the economy as the country has never experienced any debt restructuring of the sort.
“Our debt position has been tolerated. I can tell you that we cannot avoid debt restructuring…if Ghana does not go through debt restructuring, I may not even continue as a Member of the Finance Committee. Our debt is simply unsustainable…the entire envelope of government bond is going to go through some form of haircut,” he told Evans Mensah.
The MP is also worried as he believes the country “has no expertise” to do a debt restructuring.
According to Dr. Ato Forson, the government has poorly handled the communications surrounding its decision to debt restructure.
He contended that the unwavering impact of such a decision on the country’s economy needed the MF to make such an announcement after its debt sustainability analysis.
“The communication around this matter has been extremely poor. Our country is in trouble because of the people who are in charge. The level of ineptitude is just too much, the way they handle issues is just unacceptable. The communication around this has been poorly done. It should have been the IMF after doing debt sustainability analysis that they will find a better way to announce it and get it done properly…the strategy has failed and it is going to cost this country a lot more,” he added.
Meanwhile, the International Monetary Fund (IMF) has announced that its economic programme with Ghana will focus heavily on debt sustainability.
This was captured in a Question and Answer statement issued by the IMF as it begins deliberations with the Government of Ghana on an Economic Programme aimed at stabilising Ghana’s economy.
The IMF also added that the programme will support the credibility of government policies, restore confidence in the central bank’s ability to manage inflation and accumulate foreign exchange reserves to help the local currency withstand headwinds.