William Kwaku Addo Dankwa Akufo-Addo has disclosed that the Domestic Debt Exchange Programme (DDEP) was one of the most challenging decisions his administration had to make during his tenure as President.
He says the debt restructuring, although painful, was necessary to address Ghana’s unsustainable debt levels which would have plunged the nation into further chaos, had the decision not been made at the time.
The President, delivering his final State of the Nation Address (SoNA) on Friday, January 03, 2025, noted Ghana was at a state where the restructuring was the only way to save the economy, the reason he had to embark on such unpopular initiative to subdue the situation.
“It was one of the most challenging decisions my administration had to make as we were pretty aware of the personal financial hardships it would impose on individuals, families and institutions across the country. Many citizens had invested their hard earned savings and we fully understood the pain and sacrifices this exercise demanded.
“However, it become evident that without such bold and decisive action, our economy would have faced even a greater crises with far-reaching consequences for every Ghanaian. This restructuring was essential to address unsustainable debt levels and to create the fiscal space needed to stabilise the economy and laid the ground well for future growth,” Akufo-Addo stated.
The DDEP was launched in December 2022 and has since met fierce resistance from stakeholders whose investments have been affected.
It is a programme the government initiated to substitute existing local bonds for new ones to restructure its debt as a precondition for a bailout from the Bretton Woods Institute, the International Monetary Fund (IMF).
Whilst many believe the initiative is too much a sacrifice from affected persons in the debt restructuring, they say government itself is not sacrificing enough to realise the programme.
