Ghana News

Some banks unhappy with current form of debt exchange programme



Some banks have expressed unhappiness with government’s modification of the debt exchange programme and its timelines, saying, it will negatively affect their operations.

According to Managing Director of FBN Bank Ghana, Victor Yaw Asante, the current form of the programme will have negative implications on their businesses.

He, however pointed out that the bank has met stakeholders and the government on the way forward.

Speaking to Joy Business, Mr. Asante said his outfit is putting in place measures to communicate any development to its customers.

“We’ve been engaging all players. This include the government because they are rolling it and whatever they do has implications for us and our regulators. There has been a lot of engagement since the announcement was made”, he said.

He stated that even though banks in the country engaged the relevant stakeholders, the final outcome should have taken on board most of the concerns of the banks to create a balance situation.

“We wait and see. We are now going to bake in all the changes and see how   it pans out. The debt exchange programme has many problems. There is liquidity issues”, he lamented.

“Banks are now worried that we may not have liquidity. We are engaging our regulator about how we will manage the liquidity and see how we can have a forbearance around some of the requirements of the regular bank or else it will affect us”, he added.

Sharing his views on moves for the cancellation of Ghana’s debt by some multilateral and bilateral partners, Mr. Asante said even though it may bring some relief it cannot save the economy.

“We owe money. If your debtor forgives you, thank God for it. But for now we are in a serious position because we are not generating as much as we should generate in terms of debt service and we all know what happened at the beginning of the year, our debt went up, revenue didn’t come as we thought, so it’s good if we get the cancellation”, he said.

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