DDEP will wipe out the entire life savings of six million Ghanaians – Mahama

Former President John Dramani Mahama believes that the Domestic Debt Exchange Programme (DDEP) will destroy Ghanaians’ life savings and the entire financial sector.

According to John Mahama, six million Ghanaians are likely to lose their life savings if some changes are not made.

He made the remarks while speaking on the topic of “Africa’s Strategic Priorities and Global Role” at the Chatham House in London.

According to him, Ghana would be celebrating its 66th anniversary as a bankrupt country as a result of the Akufo-Addo-Bawumia administration’s bad economic policies.

“In a little under six weeks from today, Ghana will mark sixty-six (66) years of nationhood. Far from being an occasion to celebrate independence and the successes and achievements of nationhood, we will mark this day under the yoke of the worst economic situation in decades.

“We are currently bankrupt and burdened with national debt we are simply not able to pay. You may have learnt over the past few weeks that the Ghanaian government has defaulted on servicing of both external and domestic debt.

“There is currently a huge uproar over a controversial debt restructuring programme under which the middle class of Ghana could be wiped out if plans to have them forfeit proceeds of government bonds on which they rely for investment and sustenance are followed through.

“In absolute terms, up to about six (6) million people could be deprived of their life savings and investments. Ghana’s banking and financial sector could also be under threat of insolvency if no suitable adjustments are made to the debt restructuring plans.,” the former President said.

He also called for dialogue on the debt exchange programme stressing he was not against it.

“I am not opposed to debt restructuring. What has been the contention is the lack of dialogue and consultation with the debt holders on the domestic side. I know that negotiations are taking place with the bondholders on the external side but not the same treatment on the domestic side.

“I have been an advocate for dialogue. Before this whole crisis started, I advised the government and said they should hold a national dialogue on the economy, give us the state of the economy and let everybody understand and after that seek broad consensus behind the economic programme. But this was never done and what we expected will happen, happened.”