(Accra ), Mr Nathaniel Dwamena, Chief Executive Officer (CEO) Young African For Opportunities(YAFO) a policy think thank based in Accra has advised the government to exempt vehicle insurance from it Controversial Domestic Debt Exchange Programm (DDEP).
In an interview with newsfarmgh .com , Mr Dwamena revealed that the government quest to ensure financial stability, it sought to draw funds from all sources unimaginably through its Domestic Debt Exchange Programm (DDEP).
He hinted that, vehicle insurance funds should not be included as one of those sources stressing it should be exempted from the DDEP.
According to the YAFO Chief Executive Officer, the government DDEP was an invitation involving some whooping GHS137 billion exchange for domestic notes and bonds and promises to deploy all regulatory and supervisory tools to mitigate risks to financial stability.
He said in spite of the agreement with the Ghana Insurers Association (GIA) serious caution needed to be taken so as to ensure vehicle insurance was completely exempted from the DDEP saying the entities which failed to supervise government excessive borrowing and expenditure ,was likely to supervise risk mitigations should the government implement the Domestic Debt Exchange Program (DDEP).
Mr Dwamena further opined that the National Road Safety Authority (NRSA) reported that a total of 17,272 vehicles were involved in accidents out of which about 1,900 lives perished in 2022 arguing that there was the need for the readiness of funds to compensate victims during such eventualities.
He noted that, exempting vehicle insurance from the DDEP would not significantly impact the program saying the government needed to first demonstrate its commitment to ensuring financial stability rather than falling on individuals’ funds safeguarded for unforeseen circumstances
Mr Dwamena asserted that Ghana’s current situation with debt to GDP was hovering around 97% adding that it was not a sudden event but an accumulation of reckless borrowing and excessive spending by the government.
He blamed Statutory bodies and regulators to have watched on for the government to over borrowed.
‘As a nation we cannot borrow our way to prosperity’ he fumed , saying It was time to put a ceiling on government borrowing and provide a transparent and participatory process for the increment of such ceiling if the need arises.
Mr Dwamena advised the government to approach the crisis holistically and demonstrate commitment by reducing the size of government, employ fiscal discipline, and cut down on it expenditure as well as reducing government waste.