Presidential candidate of the opposition National Democratic Congress (NDC) has opined that the governor of the Bank of Ghana is using the Domestic Debt Exchange Programme (DDEP) to cover his mismanagement of the central bank.
He was reacting to response from the Bank of Ghana on the reasons why it recorded Ghc60 billion in losses in the 2022 financial year.
The central bank has informed Ghanaians that GH53.1 billion of the GH60 billion losses recorded in the central bank’s 2022 financial results were a direct outcome of the government’s domestic debt restructuring process, including the first and second stages.
The domestic debt exchange (DDE), which was a crucial component of the corrective action necessary for the International Monetary Fund (IMF) programme, did not meet the required aim, according to the BoG.
The goal was to reduce the stock of government debt by half, from 105 percent of GDP to 55 percent of GDP by 2028.
“Despite the losses inflicted on households and banks, the threshold of 55 per cent of GDP was not met”.
“The Bank of Ghana was used to close the gap to enable Ghana to meet the debt threshold that qualified Ghana for the IMF programme.
The Bank of Ghana, therefore, acted as a loss absorber,” the central bank said.
But Mr. Mahama has described the response from the bank as a way of serving up the incompetence of the governor.
He also accused the Finance Minister of damaging the economy and using Covid-19 and Ukraine/Russia war as cover-ups while the governor of the BoG is also using the DDE after destroying the Central Bank.
By: Rainbowradioonline.com/Ghana
