DDEP: Government changing methods of calculating participation rate - Bright Simons alleges

Vice President of IMANI-Africa, Bright Simons has said the government’s attempts to skew the assessment of the participation rate in the domestic debt exchange program won’t wash.

Government is said to have achieved more than the 80% target needed for the Domestic Debt Exchange Programme (DDEP).

The target was reportedly realised on Friday, 10th February 2023.

But Simons believes the debt service pressure will give the true state of affairs.

“Government of Ghana is trying to change longstanding methods of calculating participation rate in debt exchanges by altering the denominator of total principal. Won’t wash. The debt relief obtained is what it is. It will be felt in the debt servicing burden. Should have consulted more,” Bright Simons wrote in a tweet on Monday.

He further added, “Given the very low level of trust and suppression of creditor interests through stampeding tactics, a relatively high holdout rate, as witnessed, is the equilibrium outcome.”

For him, this ensures an effective balance of power and makes the government think twice about penalising any creditor faction.

Meanwhile, the Finance Minister, Ken Ofori-Atta is billed to appear before Parliament on Thursday, February 16, 2023, following the agitations disrupting government’s Domestic Debt Exchange programme.

Speaker of Parliament, Alban Bagbin directed the Business Committee of the House to summon the Finance Minister to give a policy brief on the programme amid protests by pensioner bondholders for an exemption from the programme.