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| Professor Godfred Bokpin Image source: myjoyonline.com |
Economist Professor Godfred Bokpin has criticized government the for
failing to fulfill its commitment to adjust fiscal expenditure during the
country's debt sustainability crisis. As a result, creditors have agreed to
take a reduction in the amount owed to them in order to resolve the situation.
Speaking on JoyNews' PM Express, Professor Bokpin stated that the government
prematurely declared the initial debt exchange program a success, despite the
significant gap that needed to be closed in terms of debt sustainability. He also
noted that the government's lack of consultation with bondholders regarding the
reopening of the program demonstrates a disregard for their importance as
stakeholders. Professor Bokpin expressed his disappointment in the government's
failure to swiftly bring closure to the debt exchange process and emphasized
the need to generate trust in the financial system. He suggested that there is
room for expenditure-based fiscal adjustments that would alleviate the burden
on creditors, rather than relying solely on debt restructuring. The government
has stated that, under certain circumstances, it may prioritize payments on the
new bonds over payments on eligible bonds, and that participating in the
reopening of the program would improve its cash flow position and support debt
sustainability.
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