Economist Professor Godfred Bokpin Has Criticized Government For Economic Crisis

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.