Your bonds are potentially worthless if you don’t subscribe to debt exchange programme – Gabby Otchere-Darko

Private legal practitioner, Gabby Otchere-Darko, has indicated that the refusal by individual bondholders to accept government’s debt exchange programme will worsen the country’s economic crisis.

According to the NPP stalwart, the widespread rejection by the bondholders will not augur well for the country, hence the need for them to soften their stance.

In a series of tweets on Sunday evening, he explained that even though the terms of the debt exchange programme will affect individual bondholders, it is a necessary step which must be taken to salvage the economy.

He said if the bondholders fail to cooperate with government, their bonds may be affected in the future in addition to a further deterioration of the economy.

“Ghana is in a very difficult place. What we are seeing with the mobilisation of agitation on individual bondholders poses a real and serious risk worse than what we witnessed when opposition to E-Levy succeeded in derailing an already shaky macroeconomic situation from 2021”, portions of his tweets read.

“The debt exchange programme is voluntary for individual bondholders but a very necessary evil for our economy.

Its success is critical to restoring macroeconomic stability, securing an IMF prog. It hits those of us holding bonds very hard. A straight no to it is no solution!”, Mr Otchere-Darko stressed.

“If the no-compromise opposition to it wins, what then has been achieved? It may lead to national debt default.So what then happens to the value of your bonds after! Potentially worthless. If participation is low, we jeopardize resolving the economic crisis and hardships”, he wrote.

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Source: myjoyonline.com