Government and the Ghana Insurers Association (GIA) have reached an agreement on the participation of insurance companies in the Domestic Debt Exchange Programme (DDEP).
Under the agreement, insurance companies will participate in the programme on similar terms as the Banks.
Also, the Government through the solvency window of the Ghana Financial Stability Fund (GFSF) will provide support for the insurance companies that are seriously affected by the DDEP.
“The objective is to protect jobs and the stability of the industry. The GIA is happy to reach a deal with the Government that protects its members, but also enabling the Government to push through the necessary economic reforms at this difficult times,” a release jointly issued by the Government of Ghana and the GIA said.
It further noted that, “This milestone on the back of the success with the banking industry, has taken the Government closer to completing the DDEP which is a key factor to restore economic stability and growth.”
The Individual Bondholders Forum (IBF) which is kicking against the inclusion of its members in the government’s domestic debt restructuring programme, has given the Akufo-Addo administration some ideas it can use to save the economy some GH¢83.5 billion so as to spare them from a haircut.
The proposed measures include enforcing property taxation and VAT invigilation, recovering funds lost to financial irregularities as identified by the Auditor-General, divesting loss-making, defunct and troubled 17 state-owned enterprises, privatising selected SOEs to Tier-2 pension funds to drive efficiency and productivity, and reviewing the Free SHS Programme to make it more efficient through effective targeting and allowing parents who can pay to do so among others.
“The measures proposed above, per the estimation of the IBF, yield net savings of GHS83.5bn”, the IBF said in its report, adding: “The above recommendations are competent enough to urgently address the fiscal challenges and enable us to reach the desired 55% debt-to-GDP target proposed to the IMF”.