Government has conceded that emergency measures need to be taken in order to save the economy from deteriorating further.
According to the Ministry of Finance, a debt sustainability analysis (DSA) has demonstrated that the country’s debts are unsustainable. This includes both domestic and external debt.
This admission was contained in a statement issued by the Ministry on Monday, December 19.
The statement also announced the suspension of payments on some external debts including Eurobonds, commercial term loans, and most bilateral debts.
“This suspension is an interim emergency measure pending future agreements with all relevant creditors.”
Before this, the government had announced a domestic debt exchange programme, which has been strongly resisted by public workers.
Some of them have threatened to lay down their tools if government goes ahead with the programme, which they claim will affect their hard-earned pensions.
“Are we going to sit down for this to happen in this country? 35% payee, how much is the salary and you take the 35, how much will remain for you to take care of your family? Are you going to sit down for your pension to be hair cut? It should never happen,” Deputy Secretary General for Ghana’s Trades Union Congress (TUC) Joshua Ansah rallied workers at a meeting earlier December.