Govt’s claim of no haircut in debt exchange a mockery
Togbe Afede XIV, the Agbogbomefia of the Asogli State has described the government’s claim of no haircut in the debt exchange programme as a mockery.
The former President of the National House of Chiefs in a 14-page opinion said that a reduction in promised coupons amounted to haircuts.
“We are now faced with questions about debt sustainability and our ability to find the fiscal space to fund urgent and critical development needs. Now, the fears about Ghana defaulting on its debt repayment have effectively materialised with the announcement of a domestic Debt Exchange Programme. And we are making a mockery of ourselves talking “no haircuts” when that is exactly the effect of a reduction in promised coupon payments.
Togbe Afede in his opinion piece also admonished the government to increase taxes on high-income earners, companies, and properties as part of revenue-generating measures.
He also asked the government to introduce taxes on income from tax-exempt government domestic bills and bond investments. Immediate re-introduction of road tolls at much higher rates than they were in the past.
The CEO of Accra Hearts of Oak also urged the government to immediately suspend all non-essential new capital projects such as the National Cathedral and channel the funds into more urgent projects.