Without the Domestic Debt Exchange Program, an IMF rescue would have been impossible to achieve. – BoG

Source: newsthemegh.com

Without the Domestic Debt Exchange Program (DDEP), it would have been difficult to obtain a bailout from the International Monetary Fund (IMF), according to Dr. Philip Abradu-Otoo, Director of Research at the Bank of Ghana (BoG).

The government implemented the DDEP and the IMF program in an effort to stabilize the economy, which caused some bondholders to see a decrease in their investments and coupons.

The BoG announced a GHS 60.9 billion deficit in 2022 as a result of impairments that happened during the domestic debt exchange scheme.

Dr. Abradu-Otoo outlined the challenges the administration would have faced in the absence of the DDEP in an interview.

He mentioned that they would have needed to review other DDEP components.

Dr. Abradu-Otoo ascribed the BoG’s 2022 losses to the local debt exchange initiative.