Ghana faces another financial sector crisis – Ato Forson

Dr Cassiel Ato Forson, the Ranking Member of Parliament’s Finance Committee, has said that Ghana will face another financial sector collapse if the government goes through with its Domestic Debt Exchange Programme (DDEP).

According to him, the government through its DDEP, has being seeking to transfer its debt problem to individuals and private organisations including banks, which would lead them not being able to pay their depositors and their eventual collapse.

Speaking in an interview on JoyNews on Monday, Dr Forson added that at least five banks were on the brink of collapse because of the economic chal­lenges in the country.

He noted; “At the end of the debt restructuring, the finan­cial sector will have to collapse again. I am already seeing about five banks (that are) already going to shake because of what is going to happen to them, if we allow it (the DDEP) to go (through).”

“So, do we really want to trans­fer the burden where the state is insolvent to the private sector and what would be the repercussions going forward?” we quizzed.

Dr Forson, who is also the Member of Parliament for Ajuma­ko-Enyan-Esiam, therefore urged the government to hold on to its DDEP and make the necessary consultations before going on with it.

“That is why we are saying that it is for you, me to sit down and jaw-jaw for us to find a proper mix to resolve (the current chal­lenges),” he said.

He added that should the government decide to force the debt restructuring programme on Ghanaians, the entire middle class in the country would also be whipped out.

Meanwhile, the invitation to the Domestic Debt Exchange Programme has been extended for the third time to January 31, 2023.

This came after the second extension by the Ministry of Finance expired on January 16, this year.

The sector ministry in a tweet on Monday said building consen­sus was key to a successful eco­nomic recovery for the country.

It said important discussions were ongoing with financial institutions, notably in relation to forbearance measures, account­ing, accounting treatment, as well as the structures and parametres of the Ghana Financial Stability Fund (GFSF)

The decision to include individual bondholders was necessitated after the government was forced by labour unions to abandon plans to include pensions in the debt exchange programme which was first announced in December 2022. -ghanaweb.com

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