Eurobond: This isn't an achievement; it's a disease, a taboo to even borrow — Kwesi Pratt slams gov't 

Kwesi Pratt, Managing Editor of the Insight newspaper, has criticized the NPP government for jubilating over the recent agreement with Eurobond holders to restructure $13.1 billion of international debt.

Speaking on Peace FM's "Kokrokoo" morning show, Pratt questioned government's competence over what he considers to be a detrimental move for the country.

Ghana recently reached an agreement with two bondholder groups to restructure its Eurobonds, leading to a 37 percent haircut ($4.7 billion) and delayed repayments.

This deal marks the final step in the country's external debt restructuring under an International Monetary Fund (IMF) loan agreement.

The Committee of Holders of Ghana’s Eurobonds announced that the restructuring would provide significant cash flow and debt relief to aid Ghana's economic recovery.

The Finance Minister, Dr. Mohammed Amin Adam, hailed the agreement as a crucial step towards debt sustainability, noting that bondholders have agreed to provide $4.4 billion in cash flow relief during the IMF program and cancel $4.7 billion of the debt stock.

This, he said, would help the government ensure fiscal prudence and efficient revenue mobilization.

However, Kwesi Pratt expressed disdain for the government's celebration of this development.

According to him, borrowing should be considered a taboo and not an achievement.

"Is this an achievement?" he queried, emphasizing that borrowing shouldn't be an achievement.

Pratt criticized the government's perspective on the economic situation, saying, "Ghana, one of the few countries that celebrate inflation above 20 percent," and questioning, "What is wrong with us?

“What sort of disease is this?" he suggested that the government's attitude towards borrowing and debt restructuring is indicative of deeper economic mismanagement.

In contrast, former General Secretary of the People's National Convention (PNC), Atik Mohammed speaking on the same radio show expressed relief over the restructuring agreement.

He said, “however we got here, we all know. The refreshing news for me is that finally we are able to get this. Some fiscal space will come. The government can wiggle its way through things and the pressure on debt servicing will reduce. We can also begin to build our credit up again in the eyes of investors and the capital markets. For me, that is very crucial.”