17 banks likely to collapse under DDEP – Ato Forson

Minority leader Dr Cassiel Ato Forson has predicted that some seventeen banks risk collapsing if the government’s Domestic Debt Exchange Programme (DDEP) goes ahead the way it is being implemented.

He said the programme will rather shift the bankruptcy of the government to individuals and financial institutions, particularly banks.

The former minister made this statement on the floor of Parliament after Finance Minister Ken Ofori-Atta addressed the House about the DDEP.

Ofori-Atta said the programme was critical to the revival of the economy as the country is insolvent due to high levels of debt.

He said despite stiff opposition from some Ghanaians, including pensioners, the programme has been successful as over 1,300 pensioners and individual bondholders have willfully subscribed to it.

But debating the issue, Dr Ato Forson said the programme will impoverish Ghanaians and cripple some banks.

He stated that some “17 banks in the country are at risk as a result of the Domestic Debt Exchange Programme.”

He said despite the government saying persons such as pensioners who didn’t subscribe to the DDEP will be exempted, the Minority Caucus will push for a bill which will prevent the government from touching the funds of pensioners in the programme.

“We won’t allow you to shift the burden to the ordinary Ghanaian,” he said to the Minister who was seated in Parliament.

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