Audio By Carbonatix
Lawyer and Business Strategist, David Ofosu Dortey is warning that confidence in the finance and banking sectors could be hit badly in the coming months.
That is if the Domestic Debt Exchange Programme is not handled well by the Government.
According to him, the programme would lead to more people keeping their monies at home rather than with the banks.
“Under the PNDC regime, if you had more than 50 cedis or something like that you are the problem, people lost confidence in the financial sector - they were keeping monies at home. Then finally after 20 years, people get confidence then I make reference to February 2014 where we had a circular from the Bank of Ghana where you basically could not hold dollar anymore and a lot of people lost money, I lost money and we lost confidence. Then just as we are about to regain it, the financial sector – the capital bank, UT Bank etc vanished then we lose confidence again and just when we think the confidence is being restored, we have debt exchange,” he said.
Speaking in an interview on JoyNews’ Business Edition of PM Express on Thursday, he noted that when the confidence in the sector is killed, it will take a very long time to recover.
“I have seen people who have bought safes and trying to keep monies away from banks. So if you have a situation where .. people refuse to send monies to the banks and stop saving or save in another non-cash instrument like buying property or sending their monies abroad by buying dollars, we would have killed confidence in the banking sector and it will take a long time to recover,” he explained.
Mr. Dortey’s fears have been influenced by the government's introduction of a debt exchange programme.
The programme which was launched on December 5, 2022, is intended to restructure the country’s debt which has reached unsustainable levels.
The current structure of the programme involves the inclusion of individual bondholders.
But the individual bondholders have rejected the offer and have called on government to exempt them from the programme.
Latest Stories
-
Ablakwa supports 2,269 North Tongu SHS students with essential items
18 seconds -
Dr Bawumia expresses sympathy with farmers over their inability to sell their produce even at reduced prices
16 minutes -
Constitutional review: Govt must keep discussions open – Dr Tandoh
22 minutes -
GPL 2026/27: David Gyamfi hat-trick fires Ashantigold to historic first victory
24 minutes -
Ericsson celebrates 150 years of global innovation, 30 years of partnership and digital transformation in Ghana
1 hour -
Ghana’s Ambassador to Serbia hosts African ambassadors’ September meeting in Belgrade
1 hour -
Ghana closer to terrorism threat than ever before – WACCE
2 hours -
Gov’t must focus on quality everywhere, not categorisation of public schools – Ben Boakye
2 hours -
Tanko Computer backs comprehensive review of 1992 Constitution
2 hours -
2026 SHS placement crisis was caused by changes to established model – Former Dept. GES Director
2 hours -
GMet forecasts thunderstorms, rain across parts of Ghana tonight
2 hours -
GETFund to allocate GH¢250m to expand Category A SHS infrastructure
2 hours -
From dream homes to mortgage plans: JoyNews-Repubic Bank Habitat Fair closes Day 2 on a high
2 hours -
Afoko: Women’s inclusion key to NPP’s electoral comeback
2 hours -
2026 U-20 WWC: Black Princesses suffer another group stage exit after defeat to France
2 hours