It’s clear govt didn’t have a plan before going to the IMF – Apaak

Builsa South Member of Parliament Dr Clement Apaak has accused the government of failing to develop a plan prior to heading to the International Monetary Fund (IMF) for support.

This, he said, has informed the introduction of the domestic debt exchange that has been rejected vehemently by Indidvidaul Bondholders.

In a series of tweets, he said “It’s now clear that government didn’t have a plan before going to the IMF. Citizens and experts advised that a national stakeholders forum be held on the economy to inform best options, and to agree on a plan to the IMF, they refused. Are you surprised we are where we are?

“Shouldn’t consultations and negotiations with stakeholders have been done way back to inform the wayforward in terms of the debt restructuring? The Akufo-Addo/NPP government you will agree, has a penchant for doing consultations only when there is push back/resistance.”

Finance Minister Ken Ofori-Atta held a meeting with Individual Bondholders on Wednesday, January 18.

After the meeting, he said the members of the Individual Bondholders Forum had legitimate concerns against the inclusion of individual bondholders in the Debt Exchange.

He told journalists in Accra after a meeting that “they stated their concerns which are legitimate concerns of all Ghanaians.”

He further announced that a joint technical committee has been constituted by the Finance Minister, Ken Ofori-Atta, to look into concerns raised by individual bondholders ahead of the rollout of the Domestic Debt Exchange Programme.

The Forum had petitioned the Minister to be excluded from the Programme, which has been scheduled to be rolled out after Tuesday, January 31.

They claimed they have not been adequately engaged by government in an attempt to include their bonds in the Programme.

They accused the government of short-changing them especially as the Programme comes at a time a promise was made there will no haircuts to such investments.

Interacting with journalists after the meeting with the individual bondholders, Finance Minister Ofori-Atta indicated that the Programme is not mandatory and remains voluntary.

He, therefore, urged bondholders to subscribe to the Programme to help government in efforts to address the economic challenges.

“I think the clarity for all of us is that it is a voluntary programme,” he said.

“We have anticipated may be getting up to 80 percent which will still put us under the parameter, so we are asking everybody to really join and may be things we may do and that’s why I believe the technical committee will do.”

The committee is expected to begin sitting from Thursday, January 19.