Former President John Dramani Mahama has proposed that the governor of the Bank of Ghana is employing the Domestic Debt Exchange Programme (DDEP) as a smokescreen to obscure his alleged mismanagement of the central bank.
This observation from the NDC Flagbearer follows the Bank of Ghana’s clarification that a substantial portion of the GH¢60 billion losses recorded in its 2022 financial outcomes, amounting to GH¢53.1 billion, resulted directly from the government’s restructuring of domestic debt in both the initial and subsequent phases.
According to a statement released by the Bank of Ghana on Wednesday, the domestic debt exchange (DDE), a crucial component of the corrective measures for the International Monetary Fund (IMF) program, did not attain the intended objective.
The objective was to reduce the government debt stock from 105 percent of Gross Domestic Product (GDP) to 55 percent of GDP by 2028.
“Despite the losses inflicted on households and banks, the threshold of 55 per cent of GDP was not met”.
“The Bank of Ghana was used to close the gap to enable Ghana to meet the debt threshold that qualified Ghana for the IMF programme,” the statement elaborated.
However, in a Facebook post on Thursday, August 10, the former President accused the Finance Minister of damaging the economy and using and using Covid-19 and Ukraine/Russia war as cover-ups while the governor of the BoG is also using the DDE after destroying the Central Bank.
Source – citinewsroom.com
