Business News of Thursday, 3 February 2022
Source: www.ghanaweb.live
2022-02-03Government defaulting on maturing debts – Isaac Adongo
Isaac Adongo, Deputy Ranking Member on Parliament's Finance Committee
Ghana is broke – Isaac Adongo
Ghana has since end of 2021 defaulted on debt payments – MP
Government plans to raise over 75% of its financing in domestic markets for 2022
Deputy Ranking Member on the Finance Committee in Parliament,
Read full articlehref='/GhanaHomePage/people/person.php?ID=2848'>Isaac Adongo, has alleged that the economic challenges Ghana is facing are dire than what government officials will want the public to believe.
According to the MP, Ghana has since the end of 2021 been defaulting in payments of its debts.
In a Facebook post sighted by GhanaWeb, Isaac Adongo alleged that government has requested bond holders to rollover their investment while other bonds have been restructured to afford government some breathing space.
“Ghana has been defaulting in repaying maturing bonds since late 2021 and compelling maturing bond holders to keep these bonds for a while longer under rollovers and restructuring.” Isaac Adongo wrote on Facebook.
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The Bolgatanga Central MP in his view believes this development shows Ghana is broke beyond what the public is being made to perceive.
“Not only is government broke but Ghana is broke with liquidity crunch,” Adongo added.
Meanwhile, government plans to raise just over 75% of its financing in domestic markets for 2022.
Although the move, according to market analysts, would compound the risk of a simultaneous banking crisis in the event of a default, as government debt already represents 31% of the total assets of Ghanaian banks.
