Debt Exchange: Adongo appeals to investors to spare financial sector from further pressure

Bolga Central Member of Parliament Isaac Adongo has appealed to investors to be patient following the launch of the Debt Exchange programme and not plunge the country’s financial sector into further pressure.

Mr Adongo accused the Finance Minister of single-handedly introducing the Debt Exchange programme. gathers that the Minister of Finance, Ken Ofori-Atta, had written to the Attorney General, Godfred Yeboah Dame, initially, seeking, inter alia, to impose the Programme on bondholders under Executive Instrument to be assented by the President by way of “emergency powers”.

In a reply dated Friday, November 18, the Attorney General advised government against such a move.

“The process of the government undertaking debt restructuring does not fall within the confines of articles 21 and 31 of the Constitution.

“Debt restructuring which may require the Government to vary terms of its bond agreements will not constitute an emergency situation permitting the President to invoke the emergency powers conferred upon him by the Constitution.”

Mr Yeboah Dame further explained: “Even though Governments are entitled to issue executive instruments or to take measures, as provided in Act 982 to address issues of unforeseen economic shocks, doing so to impose CACs on bondholders may amount to a unilateral modification of a bond agreement which is also the product of the exercise of an executive action of government in its commercial capacity.”

Mr Ofori-Atta was consequently advised by the AG to voluntarily engage with relevant parties in order to make the programme successful.

Speaking to journalists in Accra on Tuesday December 6, Mr Adongo said “You cannot unliterally sit in the office, shred those agreements and illegally and arrogantly compel people to accept what you want. We are all aware that since yesterday our Financial sector has become inundated by customers calling in and some actually rushing there taking that something untoward was happening to their money.

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“Today, I want to appeal to all bond holders and investors to exercise caution and spare our financial sector from any further pressure. But I want to announce today that  it is quite clear from the Attorney General that those was not the  action of government, it is the action of Ken Ofori-Atta and not the government.

“It is not possible for cabinet to  approve a transaction that the chief legal officer  the Attorney General says  it is illegal.”

By Laud Nartey||Ghana