parliamentary briefing scheduled for next week Thursday by Ofori-Atta
Updated Scoop on the Domestic Debt Exchange Programme (DDEP) in Ghana
The Minister of Finance, Ken Ofori-Atta, is gearing up to spill the beans on the Domestic Debt Exchange Programme (DDEP) next Thursday, February 16. This juicy tidbit came from the deputy Majority Leader, Alexander Afenyo-Markin, during a House meeting.
This move isn't just a random act, it's in response to the Speaker of Parliament, Alban Sumana Bagbin's ruling. Some disgruntled MPs had demanded the finance minister's presence to shed light on the DDEP, expressing concerns that the lack of transparency only fuels public anxiety about the program.
The MP for North Tongu, Samuel Okudzeto Ablakwa, had previously scrutinized the government's approach, claiming that it goes against the finance minister's 2023 budget promise to announce the DDEP's details before its implementation. He argued that this failure has caused a few bumps in the road, such as the recent protests by affected pensioners and individual bondholders at the ministry.
In a heated parliamentary session, Okudzeto Ablakwa urged the Minister of Finance to step up and address the House, stressing the need to debate and agree on the nature of the DDEP. He expressed the public's concerns, stating that Ghanaians are anxious about their savings and investments, despite the House's lack of information on the program. He added that the Finance Minister must spell out the program's details, including those who should be exempted, and the potential economic and social impacts on citizens.
In the broader scheme of things, the DDEP is part of Ghana's efforts to manage its debt challenges. The country has been burning the midnight oil implementing various debt restructuring strategies, including the DDEP, in tandem with negotiations with foreign creditors. The 2024 Annual Public Debt Report highlights the strides made in debt restructuring, noting significant efforts to lessen debt service obligations[2]. However, the spotlight has now shifted towards finalizing bilateral agreements with external creditors and tackling liquidity problems in the banking sector caused by the DDEP[5].
The ongoing concerns about the DDEP reflect broader challenges in implementing debt restructuring programs. Balancing fiscal sustainability with economic recovery and social welfare is a delicate dance, as these programs can have significant impacts on various sectors of the economy, potentially affecting individuals and businesses holding government bonds[5].
- The upcoming discourse on the Domestic Debt Exchange Programme (DDEP) in Ghana, to be led by the Minister of Finance, Ken Ofori-Atta, next Thursday, echoes the need for transparency in finance and business matters.
2.Politics and policy-and-legislation play crucial roles in addressing concerns about the DDEP, as the program's details can influence general news, economics, and people's savings and investments.
3.The impact of the DDEP extends beyond the domestic economy, as it is part of the country's larger strategy in managing its debt, including negotiations with foreign creditors.
- The finalization of bilateral agreements with external creditors and tackling liquidity problems in the banking sector remain pressing issues in the context of the DDEP and broader debt restructuring efforts.
