President Nana Akufo-Addo has assured that no investor will lose any money due to the ongoing International Monetary Fund (IMF) negotiations.
“I also want to assure all Ghanaians that no individual or institutional investor, including pension funds, in government treasury bills or instruments will lose their money due to our ongoing IMF negotiations.
“There will be no haircuts, so I urge all of you to ignore the false rumours, just as, in the banking sector clean-up, the government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits,” the president said in his address on Sunday.
In financial markets, a haircut refers to a reduction applied to the value of an asset. One example of when haircuts are used is when central banks lend money to commercial banks. In return for the loan, as a form of insurance, the central bank will ask for collateral.
President Akufo-Addo was reacting to an anonymous two-minute audio suggesting a so-called haircut on government bonds as a result of the weakening of the Cedi.
He warned persons in the habit of peddling falsehood to desist from such practice.
“To those who make it a habit of publishing falsehoods, which result in panic in the system, I say to them that the relevant state agencies will act against such persons,” President Akufo-Addo warned.
The president further stressed that his government is committed to reducing the country’s debt.
“We plan to reduce our total public debt to GDP ratio to some 55% in present value terms by 2028, with the servicing of our external debt pegged at not more than 18% of our annual revenue also by 2028,” he added.
The government is currently seeking $3 billion in economic recovery support from the IMF, amid intensifying hardship, a rising cost of living and a depreciating cedi.
The president is hopeful that the countrywilld secure a deal with the IMF by the end of the year.