Upon request by the Speaker of Parliament, Alban Bagbin, Finance Minister, Ken Ofori-Atta, has appeared before the House, to answer questions on the economy, particularly, the Domestic Debt Exchange Programme.
Mr. Ofori Atta’s appearance follows days of picketing the Ministry of Finance by pensioners bondholders and others who are dissatisfied with government’s decision to include pensioners in the DDE Programme.
Mr. Ofori-Atta said government is mindful of the ramification of the debt programme, and has therefore established a national stability fund to provide liquidity for the financial sector.
“Mr. Speaker, Government is mindful of the Exchange’s ramifications on the country’s financial health. As a result, the government is developing several prudential measures to mitigate the potential impact on domestic creditors, considering the need to preserve financial stability. Billions of taxpayer’s monies were used between 2017 and 2019 to rescue the financial sector. We have no intention to imperil that work and we are determined to protect banks operating in Ghana and strengthen their capacity to finance the economic recovery and growth we see before us.”
“The respective regulators have assessed the potential impact of the Exchange on the financial sector. Working together, Bank of Ghana, the Securities & Exchange Commission, the National Insurance Commission, and the National Pensions Regulatory Authority are recalibrating their regulatory tools to accommodate the necessary forbearances for the respective sectors.”
“In addition, a Financial Stability Fund (FSF) is being established by Government with the help of development partners to provide liquidity and solvency support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they are able to meet their obligations to their clients as they fall due.” Finance Minister Ken Ofori-Atta said.
