Dr. Mark Assibey-Yeboah, a former New Patriotic Party (NPP) member of parliament for New Juaben South, has claimed that Ghana's economy is currently in a terrible state.
He claimed that the weakening economy is causing banks and the entire financial industry to fail.
The chair of the Finance Committee of the 7th Parliament, Dr. Assibey-Yeboah, remarked on TV3's Business Focus with Paa Kwasi Asare on January 16: "Now, we are in a hole, you have individual bondholders going to be affected, the financial industry is going to smash." The banks—I won't name names—will fail, and given where our nation is right now, now is not the time to massage the situation.
"Let's assume you are a bank with a GHS2 billion exposure to government bonds. Do you know what would happen to your balance if you have a 20% interest rate and forgo paying 450 million Cedis in interest? Banks will therefore lay off workers.
He anticipated that the deadline for the Domestic Debt Exchange would be advanced once more.
According to him, the administration has not taken the essential actions to guarantee a successful program.
The Domestic Debt Exchange (DDE) Program was once again extended by the government on Monday, January 16.
Following calls from individual bondholders to join the Programme, this is the third extension.
The choice is to give the government more freedom to communicate with these bondholders.
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