Gabby Otchere-Darko, a pillar of the NPP, has emphasized the importance of the government's debt swap scheme in encouraging talks with the International Monetary Fund (IMF).
Ghana is now negotiating an agreement with an international lender to help revive the struggling national economy. If accepted, the agreement will assist Ghana in properly balancing its finances and predicting greater economic prospects.
However, Mr. Otchere-Darko asserts that this is only feasible if everyone supports the government's domestic debt swap scheme.
He thus urged all individual bondholders to cooperate with the government for the aforementioned initiative's effective execution in a tweet on Sunday. For individual bondholders, the debt swap scheme is optional, but it is a necessary evil for our economy.
Restoring macroeconomic stability and securing an IMF programme depend on its performance. Those of us who own bonds are severely impacted. He stated, "A flat no to it is no solution.
Since gaining independence in 1957, Ghana has engaged with the IMF seventeen times, including this return.
Ghana and the IMF have consistently interacted as a result of the depreciation of the local currency, fiscal irresponsibility, budget deficits, and a variety of other economic management failures.
The local currency's decline in value relative to other important trading currencies has been noted as one of the significant causes in its continuing negotiations with the Fund.
Additionally, the country's recent IMF participation, which began on July 1, 2022, was influenced by both the nation's high debt levels and growing inflation.
However, the administration has constantly insisted that if it weren't for the Russia-Ukraine War and the COVID-19 Pandemic, these variables would not have come back into play.
The economy, which, according to government communicators and state officials, was doing well before these twin tragedies, went into a tailspin as a result of the epidemic and the conflict working together.
Meanwhile, detractors contend that the government's own poor management, careless borrowing, and corruption are to blame for the nation's 17th return to the IMF.
To support the government's ambitions for reviving the economy, it is anticipated that the negotiations with the IMF would be completed before the first half of the year.
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