Governor of Bank of Ghana using DDEP as cover-up for his mismanagement – John Mahama

Former President John Dramani Mahama has criticized the governor of the Bank of Ghana (BoG), suggesting that the Domestic Debt Exchange Programme (DDEP) is being employed as a smokescreen to obscure the alleged mismanagement of the central bank.

Mahama's comments come in response to the Bank of Ghana's explanation that a significant portion of its GH¢60 billion losses in the 2022 financial results was attributed to the government's domestic debt restructuring exercise, encompassing both the first and second phases.

A statement from the BoG on Wednesday revealed that the Domestic Debt Exchange (DDE) did not meet the targeted reduction of government debt from 105 per cent of Gross Domestic Product (GDP) to 55 per cent of GDP by 2028, despite the losses incurred.

The Bank of Ghana was utilized to bridge the gap and enable Ghana to meet the debt threshold for the International Monetary Fund (IMF) programme, effectively acting as a loss absorber.

In response, Mahama accused the Finance Minister of damaging the economy while using Covid-19 and the Ukraine/Russia conflict as cover-ups. Additionally, he alleged that the governor of the BoG is employing the DDEP to mask mismanagement after “destroying” the Central Bank.