Professor John Gatsi has sent a strong message to the Government of Ghana about how to restructure debts in the face of the IMF bailout programme.
He explained that debt restructuring is considered when there is a default due to interest rate burden or weaker revenue opportunities.
He explained that there is the need for government to be transparent about the existence of other debts to make a debt restructuring approach successful. He also encouraged the Government to disclose the country's true debt position whilst embarking on the debt restructuring exercise.
The Professor also advised that negotiating with existing creditors without the involvement of the IMF would make the attempt unrealistic.
The Professor also indicated that even with the IMF Debt restructuring, there is the need to employ painful restrictive covenants.
He revealed that Ghana has a lot to do to gain some market trust for debt restructuring which is part of the IMF pointers.
What are your thoughts on the ongoing discussion?
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