The Association of Ghana Industries is calling on government and its key institutions to carefully consider some components of the Domestic Debt Exchange Programme (DDEP) as the current structure of the programme has the propensity to stifle the flow of liquidity to its members.
Government is embarking on a debt restructuring programme to enable it access a 3 billion dollar facility from the International Monetary Fund (IMF) which will ultimately restore fiscal stability in the country.
This is despite the stiff opposition put out by pensioner bondholders who stand to lose their investment due to the DDE
But in a statement issued by the Association of the Ghana Industries signed by the Chief Executive Officer, Seth Twum-Akwaboah, the Association urged government to come out with clearer modalities on the DDEP
“AGI is concerned that the current state of the program will impact the liquidity and solvency position of financial institutions and limit their ability to support the real sector of the economy, and this requires maximum attention.”
“The AGI envisages liquidity constraints the banks will face under the DDEP and its impact on business access to finance. It is important to stress that in the wake of potential challenges, the productive sectors of the economy are not denied access to much needed funds to increase their production.”
Find attached the full statement: