By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Starr FmStarr FmStarr Fm
  • Home
  • Election Hub
  • General
    GeneralShow More
    Ablekuma North rerun: Police interdict officer for assaulting journalist
    July 11, 2025
    Ablekuma North Rerun: Both NDC, NPP optimistic of winning
    July 11, 2025
    Ewurabena will win and develop Ablekuma North – Accra Mayor
    July 11, 2025
    EIB reporter attacked by police during Ablekuma North rerun
    July 11, 2025
    Ghana seeks diplomatic solution as US tightens Visa rules
    July 11, 2025
  • Business
    BusinessShow More
    Mayekoo doubles donations to African causes with new matching fund campaign 
    July 10, 2025
    Government inaugurates new NIB board, announces plan to recapitalise bank
    July 9, 2025
    Ghana’s gold now powers cedi stability – President Mahama
    July 8, 2025
    VRA sets the benchmark in African public procurement
    July 8, 2025
    IMF Executive Board approves $370 million disbursement for Ghana
    July 7, 2025
  • Politics
    PoliticsShow More
    Ablekuma North rerun: Police interdict officer for assaulting journalist
    July 11, 2025
    Ablekuma North Rerun: Both NDC, NPP optimistic of winning
    July 11, 2025
    Ewurabena will win and develop Ablekuma North – Accra Mayor
    July 11, 2025
    EIB reporter attacked by police during Ablekuma North rerun
    July 11, 2025
    Ablekuma North rerun: No military deployment — Defence Minister assures
    July 11, 2025
  • Entertainment
    EntertainmentShow More
    Sim Majorley: Korea, Ghana to share cultures through stage production
    July 11, 2025
    I took a pause to gather strength- Kwesi Slay
    July 8, 2025
    Kinaata questions TGMA credibility over ‘Record of the Year’ snub
    July 7, 2025
    Ghana grows movie premiere ignites new thinking among youth in Ashaiman
    July 7, 2025
    “I will feature Sarkodie at the right time” – Kofi Kinaata
    July 6, 2025
  • Sports
    SportsShow More
    Tottenham secure Mohammed Kudus in high-profile transfer deal
    July 10, 2025
    Ghana, Nigeria share spoils in thrilling opener of 2025 WAFU U20 Boys Cup
    July 10, 2025
    Otumfuo rallies mining sector to support revamp of Ashanti sports facilities
    July 10, 2025
    Liverpool’s Ambitious Summer: Chairman Predicts Big Moves as Champions Build a Stronger Squad
    July 10, 2025
    Kofi Adams undertakes inspection of Baba Yara Stadium
    July 9, 2025
  • Technology
    TechnologyShow More
    Samsung Galaxy Z Flip7: A pocket-sized AI powerhouse with a new edge-to-edge flexwindow
    July 10, 2025
    Real Quantum Dot Technology in Samsung QLED TVs
    June 29, 2025
    GCAA and South Korea sign deal to advance Ghana’s Drone sector
    June 25, 2025
    Onafriq, PAPSS partner to launch cross-border payment services in Ghana 
    June 20, 2025
    Yellow Card, Visa partner to accelerate stablecoin adoption across emerging economies
    June 19, 2025
  • International
    InternationalShow More
    47th AU Forum: Ablakwa criticizes $1.2m AfCFTA allocation as ‘highly insufficient’
    July 10, 2025
    Minority demands audit over $1.2m passport relaunch cost and delays
    July 9, 2025
    Minority demands compensation for citizens stranded by US embassy closure
    July 9, 2025
    Foreign Minister Okudzeto Ablakwa and Chinese Ambassador Tong Defa sign $30 million grant agreement for Aflao market
    Ghana secures $30 million Chinese grant for Aflao market project
    July 9, 2025
    The end of USAID is not catastrophic for Africa – Dr. Brian Reuben
    July 8, 2025
  • Factometer
Search
© 2024 EIB Network Ltd. All Rights Reserved.
Reading: Targeting domestic creditors in debt restructuring will hurt economy – Ato Forson
Share
Notification Show More
Font ResizerAa
Starr FmStarr Fm
Font ResizerAa
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Search
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Have an existing account? Sign In
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
GeneralHeadlines

Targeting domestic creditors in debt restructuring will hurt economy – Ato Forson

Starrfm.com.gh By Starrfm.com.gh Published October 28, 2022
Share
Dr. Cassiel Ato Forson
Dr. Cassiel Ato Forson
SHARE

The Minority Spokesperson on Finance, Dr. Cassiel Ato Forson says targeting domestic creditors in a possible debt restructuring will impact negatively on the Ghanaian economy.

Ghana’s debt stood at GHC402.4billion as of July 2022.

According to Dr. Forson, debt relief in excess of GHC200 billion is needed to make Ghana’s current debt sustainable.

Speaking at the “Building The Ghana We Want” lecture at the University of Professional Studies, Accra on Thursday, October 27, 2022, the former Deputy Finance Minister admonished the government to avoid a mickey mouse form of debt restructuring.

“One of the biggest dilemmas in solving debt restructuring is the extent to which the burden should be borne by holders of the debt instrument governed by domestic and foreign laws and that’s what people call domestic foreign debt restructuring. Restructuring domestic dent is like surgery, you only do it if you must and you avoid it if it might do more harm than good. It is a dangerous tool,” Dr. Ato Forson stated.

He added: Restructuring your domestic debt should be thought through well. Imagine the consequences of haircuts. On the face value of your interest on your bond, imagine waking up one early morning only to be told that your GHC1million in government bond has suddenly become GHC700,000 to the extent that the government has taken GHC300,000 of your money, imagine that! Pension funds will suffer a drop in value. Tier 2 and Tier 3 pension payout will drop from already low levels. Tier 1 SSNIT reserve will drop in value, SSNIT capacity to pay pensions will certainly suffer, and Insurance companies’ reserves will fall with implication for benefit payment, unfortunately. Local banks, other deposit-taking institutions, savings & loans, and rural banks will all suffer.”

You Might Also Like

Ablekuma North rerun: Police interdict officer for assaulting journalist

Ablekuma North Rerun: Both NDC, NPP optimistic of winning

Ewurabena will win and develop Ablekuma North – Accra Mayor

EIB reporter attacked by police during Ablekuma North rerun

Ghana seeks diplomatic solution as US tightens Visa rules

TAGGED:ato forsondebt restructuringdomestic creditors
Share This Article
Facebook Twitter Email Print
Share
Previous Article Asking Ofori-Atta to stay until IMF negotiation is done untenable – Mahama
Next Article Stop collateralizing statutory funds for debt servicing – Mahama tells Gov’t

Starr 103.5FM

Starr FmStarr Fm
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
newsletter icon
Join Us!

Subscribe to our newsletter and never miss our latest in news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.
adbanner
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Lost your password?