Contributing to a panel discussion on Ghana’s Debt Restructuring programme organized by Citi TV/Citi FM in collaboration with ACEP and IMANI Africa, Mavis Owusu Gyamfi said a stakeholder engagement to achieve a common vision is the only way to go.

“We really need a consensus around what we are going to do this time round. And that consensus can’t be between government and international bondholders. It can’t be between the government and banks, it has to be a national consensus,’’ she stated.

According to Mavis Owusu Gyamfi, every Ghanaian is vulnerable to a dilapidated economy and the government has a responsibility to ensure citizens are protected, so they do not suffer unjustly.

“We all have a voice and a responsibility in this game. The idea behind the compact is, irrespective of who you are, let’s all come together on a common platform to agree on some basic fundamentals.”

The theme for the forum was Ghana’s Debt Saga: Now, What Next?”.

The forum which was moderated by Vivian Kai Lokko, brought together some political and economic experts to share insights on the way forward for Ghana in sustaining the economy.

Vice President of IMANI Africa, Bright Simons contributing to the discussion said Ghana’s economic situation may worsen if the government does not manage its debt restructuring effectively.

“Usually, if a country does not treat investors well, the two things that happen are that your cost of borrowing goes up because investors now assume that you are risky, so they charge more. So you can take a country like Argentina which is a serial defaulter. Because it is a serial defaulter, countries just simply increase the amount of interest that they demand.

“Secondly, you become more and more reliant on bailouts. So if you look at Argentina’s last situation, they have to go to the IMF for as much as $57 billion because nobody on the international market will lend them money unless the IMF gave them huge money.

“So I suspect that if we are not careful, two things will happen. One is that post-restructuring, the cost of borrowing will keep going up. So treasury bills will not fall. And we will become more likely to go to the IMF for additional ECF and EFF programs,” he said.

“So if the government does not manage the debt restructuring effectively, it will worsen the situation next year and the year after.”