Napo apologises to bondholders for impact of DDEP

Matthew Opoku Prempeh, the vice-presidential candidate of the New Patriotic Party (NPP), has issued an apology to bondholders whose investments were adversely affected during the government’s Domestic Debt Exchange Programme (DDEP).

Speaking on the Accra-based Peace FM on Wednesday (16 October), Dr Opoku Prempeh acknowledged the sacrifices made by bondholders in stabilising Ghana’s economy.

Dr Opoku Prempeh expressed his gratitude to the bondholders, emphasising the critical role they played in the country’s economic recovery.

“What we have to know is that if we hadn’t met the DDEP bondholders, our economy that has now picked up wouldn’t have been possible,” he said.

According Dr Opoku Prempeh, the participation of bondholders in the programme was key to the government’s ability to restructure the country’s debt with the International Monetary Fund (IMF) and foreign bondholders.

“If they hadn’t agreed for us to exchange their 95% bonds, we couldn’t have gone through the restructuring process with the IMF, and the foreign bondholders would have not followed for us to achieve this result.

“They saw that the average Ghanaian has suffered, so they felt compelled to support Ghana’s economy,” he continued.

According to Dr Opoku Prempeh, the bondholders’ decision was vital in preventing a deeper economic crisis, and he credited them for “rescuing Ghana in our time of distress”.

Restoring stability

The Domestic Debt Exchange Programme, which was introduced to restructure Ghana’s debt and secure a bailout from the International Monetary Fund (IMF), had a significant impact on local bondholders, some of whom staged demonstrations against the government to protest their losses.

Dr Opoku Prempeh said, “All those who participated in the demonstration, we have to accept and apologise to them for taking them through what we did. It was a decision that was difficult but had to be made.”

Despite the hardships endured by the bondholders, Dr Opoku Prempeh reassured Ghanaians that the country is now on the path to economic recovery.

“After two years of [Ghana] going through this debt restructuring … we can see light at the end of the tunnel,” he said.

The NPP vice-presidential candidate’s apology highlights the government’s acknowledgment of the challenges faced by bondholders and its appreciation for their role in averting a more severe economic crisis.

The NPP government has consistently maintained that the DDEP was necessary to restore macroeconomic stability and position the country for sustainable growth. – AsaaseNews