Audio By Carbonatix
Professor Peter Quartey, the Director of the Institute of Statistical, Social, and Economic Research (ISSER), has voiced his concerns over the Domestic Debt Exchange Programme (DDEP), which he said is a painful exercise that should never be repeated.
"Debt exchange is not debt forgiveness," Prof. Quartey emphasised, dispelling any misconceptions about it.
He highlighted that despite the restructuring, the debts remain, and interest payments are deferred and prolonged.
Depending on the terms, the real value of these interest payments may even decrease, but they don't vanish into thin air.
The renowned economist raised questions regarding China's involvement in these DDEP activities, calling for transparency and accountability in such dealings.
While acknowledging that debt restructuring can free up resources for governments, Prof. Quartey cautioned against profligate spending.
He stressed that overspending could lead to budget deficits, which, in turn, might force governments to accumulate more debts to finance these deficits.
In his address, the professor underscored the paramount importance of maintaining macroeconomic stability.
He emphasised the need to enhance domestic revenue mobilisation and called for unwavering fiscal discipline and prudent expenditure management.
Prof. Quartey's stern warning serves as a reminder that while debt exchange can offer temporary relief, it should never be taken as a license for reckless spending.
The lessons learned from past experiences must guide future financial decisions to ensure the stability and prosperity of the nation.
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