An investment analyst, Edgar Wiredu, has okayed the International Monetary Fund's (IMF) framework to restructure the country’s sovereign debts.
According to the investment analyst, the decision to restructure the debts is inevitable.
Mr Wiredu who is also a lawyer by profession, made this comment while reacting to the plans by the IMF to restructure Ghana's sovereign debts.
Speaking in an interview on Accra 100.5 FM’s evening news on Tuesday, 26 September 2022, noted that sovereign debt restructuring is different from banking sector restructuring.
He added that the banking sector restructuring was good but the way and manner it was done by the government was problematic.
Mr Wiredu explained that sovereign bonds are government securities bought by commercial banks in the country.
"There is nothing safer than investing in government securities so many of the banks and the pension fund managers have all bought the government security," he said.
He noted that because government securities are lucrative, many of the banks bought the bonds without thinking about repercussions but now the government will not be able to pay for the sovereign bonds hence the IMF's decision to restructure many government securities.
He quickly added that this is just a framework being pushed by the IMF team in the country.
"Let's wait for the government to come out with the modalities for restructuring the sovereign bonds for us to better dissect the issue," he shared.
He cautioned Ghanaians against speculating about the restructuring process.
Mr Wiredu also said this is the first time the country is going through such a process of restructuring its sovereign bonds.