DDEP haircuts: Finance Minister, Parliament should've been informed – Kwabena Duffuor

Former Finance Minister, Dr. Kwabena Duffuor, has said the Central Bank should have officially informed the Minister of Finance and send a copy to Parliament on the impact of haircuts associated with government’s Domestic Debt Exchange Programme (DDEP).

He believes that the move would have provided clarity with regards to recent concerns by the Minority in parliament and Ghanaians over the Central Bank's impairment loss of GH¢60.8 billion recorded in 2022.

Making his submission on Citi TV’s Point of View programme on August 23, the former BoG Governor said, “It is not about the IMF. It is the law that says that if you and your board decide to pay so much to the government, you must inform the Minister and Parliament.”

“The IMF does not come into this. If the governor and the board, after having done that, write to the minister and Parliament, it means he has complied with the law.”

Meanwhile, the Bank of Ghana has been under criticism over its role in providing lending support to finance government and the haircuts associated with the DDEP which was launched by government in 2022.

In the 2022 financial year, the Bank of Ghana recorded an impairment loss of GH¢60.8 billion with a huge portion of the amount culminating from the debt swap.

MA/NOQ

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