Isaac Adongo, a member of parliament for Bolgatanga Central, has acknowledged that Ghana’s economy urgently needs reorganization.
However, he argues that the domestic debt exchange program launched by Minister of Finance Ken Ofori-Atta was an unjustified, unilateral procedure that would cause institutional investors to suffer disproportionate losses (bondholders).
On December 7, 2022, Adongo said it was time for impacted organizations to resist how the government was attempting to reorganize their investments while speaking at a press conference for the Minority Caucus in Parliament.
“We agree that Ghana needs restructuring but not an illegal, unilateral and arrogant misappropriation of people’s resources. This is the time to call on those activist investment lawyers, those vigilante lawyers to step up and claim their place in the fight to rescue this country,” he stressed.
Ghana is currently facing economic headwinds with a domestic debt programme facing opposition from stakeholders – largely from institutional bondholders.
Government is hoping to close a deal on debt restructuring at home in order to be able to access an International Monetary Fund (IMF) facility to support the failing economy.
“The Ace Ankomahs of today are called upon to rise up and protect our country, unless their mouths are already full, this is the time to make their names. Ken will not be allowed to arrogate unto himself powers he doesn’t have to shred people’s contract,” Adongo added.
Ofori-Atta on December 6 announced that government was restructuring bonds held by institutional investors, putting them into four groups stretching 15 years. With interest also spread in four tranches in four years.