The Ghana Association of Banks (GAB) has directed commercial banks not to sign onto the amended debt exchange offer until its members’ demands are met.

This is due to the uncertainty regarding the impact of the debt restructuring on the banking industry.

It therefore want an extension to the deadline for the amended debt exchange offer.

According to the association, it wants all concerns regarding the programme to be addressed before commercial banks accept it.

In a letter sent to Managing Directors and Chief Executive Officers of the banks, it said “from the uncertainty surrounding the programme, GAB recommends that all banks must stay any further movement on the exchange until our demands have been met. However, in the event that a bank may have to move forward to exchange, the MD/CEO must inform the CEO of GAB directly of the decision”.

The leadership of the banking industry had met the Vice President, Dr. Mahamudu Bawumia; financial sector regulators including the Bank of Ghana and other stakeholders over the debt exchange programme.

It has made several proposals to the policymakers to help reduce the impact of the programme on their operations.

So far, there had been several protests from all quarters including individual bondholders over the debt exchange programme.

They claim the government failed to consult them before rolling out the programme.

The debt exchange programme is a condition for the government to secure an IMF-support programme to revive the ailing economy.