A former Attorney General Nii Ayikoi Otoo has expressed fears that the Domestic Debt Exchange Programme (DDEP) may cause a loss of confidence in the banking sector.
Speaking on the Key Points on TV3 Saturday, February 18, he said “This will cause a loss in the confidence in the banking system. It’ll take a while for the people’s confidence to be restored.”
Domestic Debt Exchange: This will cause a loss in the confidence in the banking system. It’ll take a while for the people’s confidence to be restored – H E Nii Ayikoi Otoo#TheKeyPoints
— #TV3GH (@tv3_ghana) February 18, 2023
He further urged the Minister of Finance to engage in order to get the buy-in of the stakeholders.
“It goes back to engagement. Talk to the people, get their support and they will buy in,” he said.
Domestic Debt Exchange: It goes back to engagement. Talk to the people, get their support and they will buy in – H E Nii Ayikoi Otoo#TheKeyPoints
— #TV3GH (@tv3_ghana) February 18, 2023
Earlier, he refuted claims that the Finance Minister unilaterally changed the terms of the bonds relative to the DDEP.
Speaking on the Ghana Tonight show on TV3 Thursday, February 16, Mr Ayikoi Otoo said “ What I am worried about is the view that he has unilaterally changed the terms of the bond, he has not done that.
“For international commercial transactions, it is important that you come to Parliament for approval.”
Bawku Central Member of Parliament Mahama Ayariga had accused the Finance Minister of single-handle tampering with the terms of the bonds.
He said Mr Ofori-Atta did not have any legal right to solely decide on domestic bonds.
Mr Ayariga said every action of the Finance Minister should be scrutinized and approved by Parliament per the Public Financial Management Act.
“If he has not been coming to Parliament for approval, I am telling him today that he is doing the wrong thing, he must come to parliament for approval of the domestic bond.
“Tomorrow I will file a motion in Parliament requesting the Finance Minister to submit to Parliament,” he said on the Ghana Tonight show on TV3 Thursday, February 16.
The government announced that no revocations or withdrawals are permitted as the Domestic Debt Exchange Programme (DDEP) closes.
The Programme closed at 4:00pm on Friday, February 10 with approximately 85 percent participation.
This exceeds the target by the Ministry of Finance, which on more than three occasions extended the deadline to get more bondholders to sign up.
In a statement on Tuesday, February 14, the Ministry expressed satisfaction with the outcome of the Programme’s rollout, insisting that it is a significant achievement for government to fully implement the economic strategies in the post-Covid-19 Programme for Economic Growth (PC-PEG).
It pointed out that to provide sufficient time to settle the new bonds in an efficient manner, the Settlement Date has been extended to Tuesday, February 21 from Tuesday, February 14.
“This Settlement Date extension is, however, only to process the settlement of the New Bonds,” the statement said.
“The issue date, interest accrual schedules and payment schedules for the New Bonds will be adjusted to reflect the actual Settlement Date.
“As the Exchange period has expired, no new tenders will be accepted, and no revocations or withdrawals are permitted.”
By Laud Nartey|3news.com|Ghana