DDEP shattered the capital base of many firms - Sir Sam Jonah

Chancellor of the University of Cape Coast, Sir Sam Jonah, has said that the Domestic Debt Exchange Programme (DDEP) caused significant challenges for many firms in Ghana, and recovery will take time.

He noted that insurance companies and other businesses were heavily affected, with lingering impacts still hampering their operations.

Speaking at the annual conference of the Insurance Brokers Association of Ghana, Sir Sam Jonah highlighted that repairing the damage done to the insurance sector will require time and concerted effort.

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“The DDEP was a blow to the capital base of many firms, insurers, and intermediaries alike. Recovery has been underway, and the numbers are encouraging, but we must not mistake recovery for full restoration,” he said, as reported by myjoyonline.com.

He urged insurance executives and brokers to confront the issues honestly and take the necessary steps to resolve them, rather than adopting a complacent attitude.

“I will not soften these. They require honest naming, because problems that are named can be solved. Problems that are spoken around, in whispers and euphemisms, only grow,” he cautioned the gathered executives and brokers.

Prior to the DDEP, many insurers had invested heavily in Treasury bills and government bonds, believing them to be risk-free. However, the debt exchange revealed otherwise, resulting in significant haircuts and liquidity challenges.

SB/MA

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