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.
Latest Stories
-
Petroleum Commission gives $3.6bn contracts to indigenous companies
34 mins -
COP29 ends with $300bn annual deal to fight climate change
47 mins -
Martin Amidu: Government must account to electorates for the violent conflicts before 2024 election
52 mins -
Disregard Wontumi TV presenter’s misleading broadcast on Election 2024 voting date – EC
2 hours -
Bawku crisis: ‘Merchants of conflict are exploiting Ghana’s fractured democracy’ – Martin Amidu
3 hours -
Telecel Ghana accelerates connectivity with limited 4G MiFi promo
3 hours -
I’ve no plans to leave comedy for movie production, says Basketmouth
3 hours -
Akufo-Addo seeks to use Bawumia to complete Akyem Agenda– Asiedu Nketiah
4 hours -
‘Bawku conflict politicised for electoral gains’ -Martin Amidu alleges
4 hours -
Let’s learn from ExxonMobil, high flyers must lead the way for mergers – AOMC Boss
4 hours -
‘Let industry players play the game ‘ – AOMC boss slams political interference in oil sector
4 hours -
‘So many regulations, yet corruption prevails’ – Dr Riverson Oppong on OMC oversaturation
5 hours -
At least 24 dead after two boats capsize off coast of Madagascar
6 hours -
Madina MP lauds White Chapel Youth Group for championing peace ahead of elections
6 hours -
Man United settle for draw at Ipswich Town in Amorim’s first game in charge
6 hours