Mahama Ayariga, the representative for Bawku Central, has voiced concern over the effect of the Domestic Debt Exchange Program on Ghana's domestic private banks.

The congressman claims in a letter to the governor of the Bank of Ghana, Dr. Ernest Addison, that the initiative will actually hinder bank expansion as the government sees the need to restructure Ghana's mounting debt.

He was concerned that the banks would experience capitalization and liquidity issues as a result of their inability to secure timely and appropriate coupon payments from their bondholder, the Ghanaian government.

“I also contend that the directive of the Minister of Finance, to those banks he has so emasculated, to approach the Ghana Amalgamated Trust Plc (GAT) for support from the Ghana Financial Stability Fund (GFSF) opens them up to a takeover by investors in the GAT, if the Ghana Financial Stability Fund is not wholly publicly funded.”

Mahama Ayariga further concluded that the policy and strategic options chosen by the Finance Minister enables the illegal and unconstitutional expropriation of the private property of the present owners of domestic private banks and possibly, private international banks operating in the country.

“I call for the mobilization of the available intellectual competencies and political forces to defend the bona fides property rights of owners of private banks in Ghana. Not to do so with a sense of urgency will constitute the greatest dereliction of duty of our political class and the collapse of present owners of these banks and the takeover of these banking interests similar to what was orchestrated in the PDS saga and the intended ‘Agyapa’ deal, will capriciously, unlawfully and criminally transfer enormous wealth and concentrate it in the hands of those who might enjoy the patronage of the Minister of Finance.”

“This could disorient our democracy and potentially destabilize our politics. The history of the recent banking sector “cleanup” remains fresh in our memory,” the lawmaker concluded.

As part of efforts to secure an IMF bailout and address the country’s unsustainable debt situation, government launched the DDEP inviting bondholders to voluntarily exchange approximately GH¢137 billion domestic notes and bonds of the Republic including ESLA and Daakye for a package of new bonds.