Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has revealed that salaries would have gone unpaid, and investment returns halted if not for the Domestic Debt Exchange Programme (DDEP).

Speaking on Joy News’ PM Express Business Edition, Dr. Addison described the debt exchange as a critical intervention to avert national economic collapse during a severe crisis.

“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 stated.

He dismissed claims that the DDEP compromised the central bank’s independence, emphasizing it was a necessary response to the country’s financial challenges.

“The debt exchange programme has nothing to do with the independence of the central bank,” he clarified.

Dr. Addison detailed that the International Monetary Fund (IMF) had recommended a debt standstill, followed by the debt exchange initiative as part of efforts to restore stability.

“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.”

Reaffirming the central bank’s autonomy, he stressed, “The recent economic challenges were about survival. Let’s not oversimplify the situation.”

The DDEP, which concluded on February 10, 2023, recorded over 80% participation of eligible bonds.