President Nana Akufo-Addo has said that government is taking steps to mitigate the impact of the Domestic Debt Exchange Programme (DDEP) on the financial sector.
Speaking at the 2023 International Labour Day parade, he said that among other things the government has established the Ghana Financial Stability Fund as earlier announced as part of the process of ensuring the financial sector is aided amid the debt restructuring.
This fund, he noted, would provide, amongst others, solvency and liquidity support to eligible financial sector institutions, which may be affected by the Domestic Debt Exchange Programme.
“In addition, the Bank of Ghana and the regulators in the financial sector space have provided some regulatory reliefs to support affected institutions.
“In keeping with our common objective, the government, through the Financial Stability Council, will monitor continuously the impact of the Domestic Debt Exchange Programme on financial institutions to enable it to take remedial action, if and when necessary.”
President Akufo-Addo added that this would ensure that measures put in place to safeguard incomes, deposits, pensions, investor funds and assets are effective.
Meanwhile, he also assured organised labour of the protection of their pension funds as the government continues its debt restructuring programme aimed at securing an IMF deal.
President Akufo-Addo noted that his outfit is aware of the impact of the restructuring on workers and as such aimed to explore other beneficial options within debt sustainability limits with the cooperation of both Government and Organised Labour.
He said that “In undertaking the Domestic Debt Exchange Programme, we have been very mindful of its potential impact on the pension funds of workers.
“We will not act in any way to short-change workers in protecting their pensions.”