A senior lecturer at the Political Science Department of the University of Ghana, Dr. Joshua Zaato, has acknowledged that although the Domestic Debt Exchange Programme (DDEP) was difficult for many Ghanaians, it has contributed significantly to the country’s economic recovery.
He said the programme, despite the suffering it caused, played a key role in stabilising the debt-to-GDP ratio and reducing pressure on the country’s debt stock.
Dr. Zaato was speaking on TV3’s New Day programme on Wednesday, July 30, during a discussion on the performance of the Ghanaian economy and the impact of recent government policies.
“The DDEP was painful, very painful. A lot of Ghanaians suffered for that. But nobody in this country, or no economist, can say that it did not help our current debt stock or distribution,” he said.
He added, “It is probably one of the main reasons why our debt-to-GDP ratio has improved. It’s not any magic by anybody. The Finance Minister did not do magic.”
Dr. Zaato also urged the National Democratic Congress (NDC) government not to discard the Gold for Oil policy introduced by the previous administration.
According to him, the policy helped to shore up the country’s reserves and contributed to the relative stability of the cedi.
The policy analyst who is also a member of the NPP argued that even though the new government may choose to reform or rename it, the core idea behind using gold to support the economy should not be abandoned.
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