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The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has firmly dismissed claims that the Central Bank’s independence was compromised during the implementation of the government’s Debt Exchange Programme (DDEP).
Speaking on Joy News’ PM Express Business Edition, Dr. Addison clarified that the DDEP was a response to a critical national emergency and had no bearing on the BoG’s autonomy.
“The debt exchange programme has nothing to do with the independence of the central bank,” he stated.
Dr. Addison emphasized the gravity of the situation, describing the DDEP as an essential intervention to avert a potential economic collapse.
“It was a life-and-death matter for all Ghanaians. At that point, nothing else mattered. Salaries were not going to be paid. There was going to be chaos because nobody was getting their investment returns,” he explained.
The Governor noted that the Bank’s involvement in the programme was a strategic decision, aligned with recommendations from the International Monetary Fund (IMF). He highlighted the IMF’s approach, which called for a debt standstill followed by a structured debt exchange.
“The IMF’s approach to the crisis was clear. The Bank of Ghana had to continue financing the government to maintain stability while we worked on the programme.
“At that point, those holding government instruments were the ones impacted. What happened in October during the debt standstill could have happened much earlier in the year, but it would have been disorderly without the appropriate policies in place. This was the solution given the situation the country found itself in,” Dr. Addison elaborated.
He further rejected assertions that the BoG’s independence was undermined, asserting that its actions were consistent with global frameworks for managing economic crises.
“The recent economic challenges were about survival. Let’s not oversimplify the situation,” Dr. Addison stressed.
The Governor’s remarks underscore the BoG’s commitment to maintaining stability and its autonomy, even amidst unprecedented economic challenges.
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