The Minority in Parliament says it will not accept the government’s proposed debt restructuring program as announced.
According to the Caucus, the policy is unacceptable and cannot be allowed to proceed.
The Minority Leader, Haruna Iddrisu, said this at a press conference on Monday, December 5.
He said his side would use every legitimate means to oppose the move.
“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it.”
The Tamale South lawmaker also questioned why the 2023 budget was silent on this policy.
“I want to ask how come this debt restructuring was not included in the 2023 budget,” the outspoken politician added.
Finance Minister, Ken Ofori-Atta on Sunday, December 4, announced the government’s domestic debt exchange program.
These measures include some exemptions and external debt restructuring parameters that will be implemented.
Per his release, treasury bills and individual bondholders will not be affected by this exercise.
However, domestic bondholders will be compelled to exchange their instruments for new ones.
“Existing domestic bonds as of December 1, 2022, will be exchanged for four new bonds maturing in 2027, 2029, 2032, and 2037.
“The annual coupon on these new bonds will be set at 0% in 2023, 5% in 2024, and 10% in 2025 until maturity.
“Coupon payments will be semi-annual,” the Minister said.
Meanwhile, Mr. Ken Ofori-Atta assured us that there will be no haircuts on the principal of bonds.
