In Ghana, a great Traditional leader, the Agbogbomefia of Asogli, Togbe Afede XIV, has raised concerns about Ghana's financial conditions, comparing it to a company that would have filed for bankruptcy.
Togbe emphasised this perspective by pointing to the current IMF deal and its harsh conditions on the Ghanaian people, particularly citing the challenges posed by the Domestic Debt Exchange Programme.
In a critical and frank opinion piece titled 'Bank of Ghana has failed us,' released on Tuesday, December 26, 2023, Togbe Afede XIV highlighted the economic conditions the country is facing under the current government.
He said Ghana has fallen short of the dreams envisioned by its founding fathers and urgently requires a reorientation.
“The Ghana we have today is obviously not what our founding fathers dreamt of. We have failed woefully but have pretended otherwise. Instead of giving hope, our leaders have created a frightening sense of helplessness among the populace, especially the youth.
“As I said earlier in December 2021, during a courtesy call by the Speaker of Parliament, Ghana would have filed for bankruptcy if it were a company.
"This was effectively what we did when we went back to the IMF for bailout and implemented the Domestic Debt Exchange Programme (DDEP).
"We eventually defaulted on our debts. Holders of Government bonds suffered massive losses, and the outlook remains dim.”
“Recent events, including the Government’s inability to service its debt obligations, have finally exposed BOG. Over the past several months, BOG maintained its policy rate below the year-on-year inflation rate, departing from its previous approach.
"And the Bank recently announced massive losses in 2022, totalling GH¢60 billion, and year-end negative net worth of GH¢55 billion, making it technically bankrupt,” Togbe Afede XIV added.
Togbe Afede XIV's observations contribute to the ongoing discourse about Ghana's economic challenges and the need for strategic interventions.
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