Economist Menson Torkunoo has said local
investors with bonds who will have to bear the brunt of the government’s
domestic debt exchange programme may die of shock from the amount of cuts on
their investments.
The government has announced modalities of a domestic
debt exchange following the conclusion of Debt Sustainability Analysis as part
of negotiations with the International Monetary Fund.
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In line with the programme, domestic bondholders
are to exchange their instruments for new ones, Finance Minister Ken Ofori-Atta
said in a televised announcement on Sunday.
According to him, existing domestic bonds as of
1st December 2022 will be exchanged for a set of four new bonds maturing in
2027, 2029, 2032 and 2037.
Commenting on the announcement, the economist told
Starr News that the government has lied to Ghanaians on the purpose of the
E.S.L.A and Daakye bonds.
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“We don’t have an honest government. This is very
sad. I tell you honestly people are going to die as a result of this
announcement. I am telling you the facts. Because this is the same way this
same government spent about 25 billion Ghana cedis to wipe away or to
rationalize between seven to nine billion they have alleged to have caused by
banks,” he stated.
Mr Tukornu underscored the situation where the
nation’s economy is heading to ground zero which has never happened in the
history of the country.
The economist added that he cannot fathom why the
dire situation could warrant “bonds holders, especially domestic ones, to
sacrifice their hard earned investment to enable the government to recover. It
has never happened before. In my few years as a Ghanaians who has a little bit
of the economy. I am really sad.”
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