Debt exchange: It could be dangerous if we wipe away the middle class – Kyei-Mensah-Bonsu

Majority Leader in Parliament, Osei Kyei-Mensah-Bonsu, has urged government to engage in further dialogue on the implementation of its domestic debt exchange programme.

According to the majority leader, the programme requires more engagement as it has the potential of wiping away the country’s middle class.

“What we talking about is that many of these bondholders also belong to the middle class and that’s where the major worry is...If we are wiping away the middle class that could be dangerous, so we need to have some further dialogue on this. I’m not sure government takes interest and joy in suppressing anyone no government will have any joy in doing that," he said.

“So government thinks that this is the best way forward, however even if it is, we need to engage, reflect and then move on and that will encourage some people who have some doubt to better appreciate where we are,” he stated.

The MP who doubles as the Minister for Parliamentary Affairs made this comment when a petition was presented to parliament by a group of individual government bondholders.

The group has called on the legislature to intervene in their call on government to exclude individual bondholders from the debt exchange programme.

The bondholders are faced with limited time to sign up for the restructuring deal scheduled to expire on Monday, January 16, 2023.

According to the government, the aim of the programme is to make Ghana’s debt sustainable as a key component of securing a $3 billion loan deal with the International Monetary Fund.

But according to the majority leader, the government, moving on with the programme with caution could spell doom for the country.

“Nothing can substitute for discussions, round table discussions and engagements wherever we find ourselves in. I think it’s important that we go back to the drawing table to have engagements with the major stakeholders."

“As he said, all of us are in it. And if we don’t manage well, we’ve gone through this before, way back some 25, 30 years ago and repositioning was a major, major difficulty."

“Today many people are coming on board and if this thing should happen, how do we build confidence and trust and reconstruct a new savings culture?” he said.

The majority leader was joined by the ranking member of Parliament’s Finance Committee, Cassiel Ato Forson when the petition was presented to the house.

The group of bondholders convened by Senyo Hosi was led by private legal practitioner, Martin Kpebu when they called on the house.

GA/ESA