Former President John Mahama has criticised government’s high-handed decision in forcing a ‘haircut’ on individual bondholders and other investors following the implementation of the domestic debt exchange.

In a tweet on Thursday, the former leader said the debt swap controversies are clearly a manifestation of the failure on the part of the government in its management of the economy.

He described the Debt Exchange Programme as outrageous.

“Gov’t lies to individual bondholders; forces a haircut, and plunging more people into poverty! An absolute failure in managing our economy,” he stated in a tweet.

The former President’s comments are in relation to the government’s announcement to include individual bondholders in the debt exchange program.

According to the Ministry of Finance, individual bondholders will be invited to participate in the debt exchange even though they were originally not part.

Meanwhile, the Ghana Individual Bondholders’ Forum has served notice to embark on legal action against the government for the u-turn to include them in the Domestic Debt Exchange Program.

“Reject and refrain from complying with the mandatory deadline imposed under the DDE program and join the efforts of the IBF” portion of the statement signed by one of the Conveners, Senyo Hosi read. 

Source: Ghana/