The Director of Research at the Bank of Ghana (BoG), Dr. Philip Abradu-Otoo has clarified that securing a bailout from the International Monetary Fund (IMF), would have been challenging without the implementation of the Domestic Debt Exchange Programme (DDEP).
To stabilise the economy, the government initiated the IMF programme and introduced the DDEP, which resulted in some bondholders experiencing a reduction in their investments and coupons.
In 2022, the BoG reported a loss of GHS 60.9 billion due to impairments that occurred during the domestic debt exchange programme. In an interview, Dr. Abradu-Otoo highlighted the obstacles the government would have faced without the DDEP.
He noted that they would have had to revisit other components of the DDEP.
Dr. Abradu-Otoo attributed the losses suffered by the BoG in 2022 to the domestic debt exchange programme.
Source: Citi
