Businessman and analyst, Mr Senyo Hosi believes government has lost credibility with the uncertainty surrounding debt restructuring.
He said, the government u-turn on the no haircut announced by the president does not bode well for the investment market.
He was commenting on the clarification given by Information Minister Kojo Oppong Nkrumah on the President’s comment on haircut.
Mr Oppong Nkrumah said President Nana Addo Dankwa Akufo-Addo’s assurance that there will be no haircuts covers on principals.
“My understanding is that no principals will be touched. No principals will have a haircut,” Mr. Nkrumah said.
“The debt sustainability strategy is yet to be announced in full.”
“When they are done with the rest of the strategy, and they come out and do a full announcement, we will have clarity on the form that the debt restructuring will take,” he said.
Commenting on this in a tweet, Mr Senyo Hosi said “HAIRCUT: A reduction in the interest or bond payable (principal) that will not be repaid. So what else can the President mean when he says ‘No Haircuts’?
“With this U-turn, GoG credibility is lost and sets the market for more run for the $, crush in bonds, & investment in physical assets.”
Mr Akufo-Addo noted that some members of the public have concerns that they will lose their investments if the deal with the Fund is closed,
But delivering an address to the nation on Sunday October 30, Mr Akufo-Addo allayed the fears saying, just as customers’ deposits were saved during the banking sector clean up exercise, no one will lose money in this also
He said “There will be no ‘haircuts’, so I urge all of you to ignore the false rumours, just as, in the banking sector clean-up, Government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits.
“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, as a result of our ongoing IMF negotiations.”
Source: theGhanaianvoice.com