Impact of Debt Accumulation and Debt Restructuring on the Pension Space: A Case of Ghana

The Ghanaian economy has experienced persistent accumulation of public debt over the past decades. Debt Servicing over the years usually causes distress to the domestic economy whilst several external interventions seem to be beneficial only for a short while due to controversial fiscal and monetary policy decisions of successive governments. The recent financial sector clean-up followed by the onset of the Covid-19 pandemic and the Russian-Ukraine war have exacerbated the country’s debt burden which has culminated in a domestic debt restructuring programme aimed at securing an IMF bailout. Through thematic analysis, this research explored the debates and interviews organised by some selected Ghanaian TV stations with respect to the Domestic Debt Exchange Programme; with a research objective that sought to unravel the impact of the DDEP on stakeholders of the pensions space. The denouement of the study established four main themes by which the impacts were observed: namely, economic impact, social impact, psychological or emotional impact and reputational impact. The enormity of the impact presupposes going forward, government must perform an in-depth sensitivity analysis on the pensions space for prudent management of potential victims and repercussions. Additionally, with the exemption of pension fund, same will be negatively affected, how much more the inclusion of pensioners who are a vulnerable section of society, and institutional bondholders with whom pension schemes have invested funds.