Veteran journalist, Kwesi Pratt Jnr has slammed the Akufo-Addo government for “rejoicing” over an agreement reached with Eurobond holders regarding the treatment of Ghana’s $13 billion debt to external creditors.
Under the agreement, Eurobond holders are expected to forego approximately $4.7 billion of the debt owed to them by Ghana and provide additional cash flow relief of around $4.4 billion to support debt sustainability efforts.
“Under the Agreement in Principle, Bondholders would forego approximately $4.7 billion of their claims and provide cash flow relief of approximately $4.4 billion during the IMF program period,” the agreement term sheet stated.
President Nana Addo Dankwa Akufo-Addo and Finance Minister, Dr. Mohammed Amin Adam have hailed this as an achievement and a sign that investors have confidence in Ghana’s rebounding economy.
In response, during a panel discussion on Metro TV on Thursday, June 27, 2024, Kwesi Pratt Jnr expressed disbelief that the government is celebrating the agreement.
“When I watch television, listen to the radio, and read the newspapers, I’m always shocked by what our leaders celebrate. What are they celebrating?” he questioned.
The veteran journalist pointed out that, the agreement actually highlights the economic challenges facing the country and indicates that Ghana is financially strained and unable to meet its debt obligations.
“You’re so indebted, you can’t pay your loans, you have reached a state of bankruptcy, and so on. Your creditors gather and say, ‘Look, we need to recoup at least some of what we lent you and therefore, we are restructuring the debt, forgiving a small percentage, adjusting interest rates on some debts to recover something.’ And our leaders, surprisingly, are celebrating this as a sign of confidence in the Ghanaian economy,” Pratt remarked.
“Madness. Complete madness. You listen to the NPP’s communication and they say, ‘This is a sign of confidence in the Ghanaian economy.’ How is this a sign of confidence in the Ghanaian economy? How? Admitting that you are financially strained and unable to meet your debts is seen as a sign of confidence in the economy,” he added.
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