The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has strongly rejected claims that the independence of the Central Bank was influenced by the government’s Debt Exchange Programme (DDEP).
Dr. Addison clarified that the DDEP was a response to a severe national crisis, aimed at averting economic collapse, and had no impact on the autonomy of the Bank of Ghana.
In an interview with Joy News’ PM Express Business Edition, he described the program as a “life-and-death matter” for all Ghanaians, stressing that it was a critical step to prevent widespread chaos, including the failure to pay salaries and the loss of investment returns.
Dr. Addison explained that the BoG’s involvement in the debt exchange was a strategic decision, aligned with the International Monetary Fund’s recommendation for a debt standstill followed by the debt exchange. He emphasized that the program was not a reaction to economic shocks, but rather a necessary move to stabilize the country’s financial situation.
“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 also dismissed the notion that the independence of the central bank was undermined during the crisis, emphasizing that its measures were consistent with the IMF’s framework aimed at restoring stability.
“The recent economic challenges were about survival. Let’s not oversimplify the situation.”
