Economist at the University of Ghana Business School (UGBS), Prof Lord Mensah says that the government's current budget has no room for a Domestic Debt Exchange.

He insists that the existing GH¢65 billion budget deficit makes it difficult for government to finance it.

According to him, the 2023 budget itself needs to be reviewed.

"The reality is that the budget as we see now is not a budget that can accommodate this debt exchange. If you look at the budget deficit that has been created, which is the 65 billion, if we should keep all things equal, where would government get the financing from? There's nowhere the government can get the financing from anywhere," he said.

For him, government cannot borrow from external sources because "we've been priced out of the market."

The other alternative which could be government's last resort is the use of Treasury Bills to finance the budget deficit, which according to Prof Mensah can be risky, saying "if you're using Treasury bills to finance capital expenditure, then you don't know the kind of economics you're running."

Meanwhile, Individual Bondholders are asking the government to extricate them from the domestic exchange programme. A joint technical committee is expected to hold a second meeting to address issues. 

However, through a press release, the Christian Council of Ghana recommended a total suspension of the modality while advising a broader consultation.

In a letter dated January 19, 2023, the Council said it has come to such a conclusion having held discussions with some stakeholders of the economy.