By: Franklin ASARE-DONKOH
Chief Operations Officer at Dalex Finance, and a Financial Analyst, Mr. Joe Jackson says Ghana risks losing the support it is seeking from the International Monetary Fund (IMF) if the government’s domestic debt exchange programme does not go through.
According to him, if the debt exchange fails, the country would not be able to achieve debt sustainability, which is a requirement that the IMF is looking out for.
The Financial Analyst, in an interview, explained that if the government doesn’t get this debt exchange programme through then the country will not be able to achieve its debt sustainability, thus the IMF programme will either be delayed or may even be at risk.
“Up until now, the markets have been treating us kindly because everybody’s assumption is that somewhere in February or March IMF is coming through. If we don’t achieve our debt right, if we have to stress them again then IMF will not come when it is due or back off and then, the chaotic debt reforms we are trying to prevent will now happen with all the dark consequences of not being able to access any funds anywhere.”
Mr. Jackson, is, therefore, calling on the government to take advantage of the rejection of the programme from individual bondholders, to engage them and negotiate acceptable terms.
“Take current requests from groups as an opportunity to engage quickly and use this opportunity to negotiate acceptable terms so that the domestic debt programme will go ahead if not as scheduled, at least at this month,” he said.