The Minority group in Parliament says some form of ‘haircut’ is inevitable as government plans to restructure the country’s debt as part of the negotiations with the IMF.
According to the minority, the expect this development within the next 14 days as part of its debt restructuring measures.
The president during his state of the economy address to the nation on Sunday said, investment and pension funds will not be affected as government seek support from the IMF.
However, addressing the media on Tuesday, November 1, 2022, the Minority Leader, Haruna Iddrisu insisted that there will be some form of cuts in investments in the coming days.
“We are giving you only 14 days from today, and you will hear from them publicly efforts to restructure our unsustainable debt, and those efforts will necessarily include a sika mpɛ dede baba [mallam] for many persons who have investments and savings in some instruments
He also accused the president of creating the current economic mess the country currently finds itself in.
“As a Minority group, we believe the president failed to accept responsibility [during his address] that he is responsible for the sorry state of the Ghanaian economy, and he is responsible for the wrench economy which has consequences on livelihoods. Poverty has exacerbated, cost of living has gone high, cost of doing business has gone high, many businesses are folding up, and some industries are now re-routing their investments into neighbouring Ivory Coast and other countries because Ghana is no longer the investment haven as it should be.”
The minority leader also took a swipe at IMF boss, expressing his disagreement to her view on the policies that he believes has brought the economy to its knees.
“Those of you who listen to [Kristalina] Georgieva of the IMF, you will recall a few months ago when the World Bank and the IMF, particularly led by its Managing Director, were again categorical that they didn’t see anything wrong with Government policy. We now state that there is everything wrong with Nana Addo Dankwa Akufo-Addo’s government and his economic management team’s policy on borrowing. Borrowing is a policy. You decide to borrow and how much to borrow and where to direct the borrowing. So if you now borrow to the level of debt distress, to the level of unsustainable debt, to the level that you are now talking about ratio of 105% of GDP as your debt level and then he Nana Addo Dankwa Akufo-Addo, the president of the Republic added that he hopes that Ghana’s debt to GDP will improve to 55% by 2028, we ask the question, where will he be?”