Dr. Mahamudu Bawumia, flag bearer of the New Patriotic Party (NPP), has admitted that the Domestic Debt Exchange Programme (DDEP) initiated by the Akufo-Addo administration was painful.
The DDEP was part of the government’s debt restructuring programme as part of the preconditions to qualify for a bailout from the International Monetary Fund (IMF).
Despite it being painful, Dr. Bawumia says the initiative was unavoidable considering the impact of the Covid-19 pandemic and the Russian invasion of Ukraine which negatively impacted the global economy.
The two external shocks, according to the Vice President, are the things that drew the Akufo-Addo/Bawumia administration back, notwithstanding its outstanding performance compared to its predecessor.
“Notwithstanding our superior performance however, there remains the fact that between 2020 and 2022, we experienced severe challenges, triggered by the pandemic which brought the world and our country to a thundering halt. The world experienced the greatest economic depression since the 1930s, with most countries recording negative GDP growth.
“Supply chain disruptions and the rising price of oil resulted in major increases in the prices of fuel, freight, and food across the globe. Indeed, Ghanaians were hit very hard by rising food prices, increased exchange rate depreciation, rising fuel prices, and rising transport fares.
“Our debt became unsustainable and had to be restructured. Bondholders saw a sharp decline in their net worth following the painful yet unavoidable debt restructuring program. We faced very challenging times,” Dr. Bawumia stated during the launch of the NPP Manifesto at the Ghana Secondary Technical School in Takoradi Sunday, August 18, 2024.
The Vice President, however, indicated that, “with calm leadership and the support and understanding of the good people of Ghana, we have weathered the worst of the storm and the economy is firmly on a path of recovery, with increasing GDP growth and declining inflation.
“It is gratifying to note that our policy interventions have started yielding the desired macroeconomic results,” he stated.
