Addison Is Concealing Mismanagement With Debt Exchange Programme- Mahama

Former President of the Republic of Ghana, John Dramani Mahama has accused the governor of the Bank of Ghana (BoG), Dr Ernest Addison for using the Domestic Debt Exchange Programme (DDEP) to conceal what he describes as his mismanagement of the central bank.

The accusation by the former president who is also Flagbearer of the National Democratic Congress (NDC) followed an explanation by the Bank of Ghana (BoG) to the effect that a significant portion of its GH¢60 billion losses reported in the 2022 financial results, amounting to GH¢53.1 billion, were a direct consequence of the government’s domestic debt restructuring efforts encompassing both phases.

In a statement issued on Wednesday Aug 9, 2023, the BoG clarified that the domestic debt exchange (DDE), a pivotal component of the corrective strategy mandated by the International Monetary Fund (IMF) program, did not achieve the anticipated objectives.

The objective had been to halve the stock of government debt from 105 per cent of the Gross Domestic Product (GDP) to 55 per cent of GDP by 2028, the statement explained.

The central Bank is also facing public ridicule for the construction of a new headoffice complex valued at $250 million despite recording losses and in a time where the country is going through difficult financial challenges.