The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has categorically refuted allegations that the independence of the Central Bank is connected to the government’s Debt Exchange Programme (DDEP).
He emphasized that the debt exchange initiative was an essential measure in response to a significant national crisis and did not undermine the autonomy of the Bank of Ghana.
“The debt exchange programme is not linked to the independence of the central bank,” Dr. Addison remarked during an interview.
He characterized the DDEP as a vital national emergency that necessitated immediate action to prevent a potential economic disaster.
“It was a critical situation for all Ghanaians. At that time, no other issues held significance. There was a risk of salary payments being disrupted, which could have led to turmoil as individuals awaited their investment returns.”
Dr. Addison clarified that the Bank of Ghana’s participation in the debt exchange programme was a calculated decision rather than a mere reaction to economic pressures.
He detailed the progression of events, indicating that the International Monetary Fund (IMF) had advised a debt standstill, which was subsequently followed by a debt exchange.
“The IMF’s approach to tackling the crisis was clear. The Bank of Ghana was required to continue financing the government to maintain stability while we executed the programme.
“During that period, those holding government securities were the ones impacted. The events of October concerning the debt standstill could have transpired much earlier in the year, but it would have resulted in chaos without the appropriate policies in place. This was the most suitable solution given the challenges the country was facing.”
Dr. Addison also dismissed the notion that the central bank’s independence was compromised during the crisis, asserting that its actions were consistent with the IMF’s framework aimed at restoring stability.
