The Minister of Finance, Ken Ofori-Atta, quoted the Christian Bible to justify the government’s ongoing domestic debt exchange program, the latest measure announced to attempt to deal with Ghana’s distressing debt position.
In his speech announcing the new measure, Ofori-Atta, who is fond of using Christian messaging and oratory, used the bible quotation, 1st Samuel 30:19, to justify the move by the government.
“As 1st Samuel 30:19 says, nothing was missing, small or great. I say to you, nothing will be lost, nothing will be missing, and nothing will be broken. We will, together, recover all,” the Finance Minister said.
The message comes after announcing that there will be no “haircut” on the principal of bonds and that individuals with government bonds will have their full investments on maturity.
In a public address on the recent debate about possible haircuts on all bonds and treasury bills following government’s debt restructuring deal with the International Monetary Fund (IMF), Mr. Ofori-Atta said government will ensure that people’s investments are safe.
“Treasury Bills are completely exempted, and all holders will be paid the full value of their investments on maturity. There will be no haircut on the principal of bonds. Individual holders of bonds will not be affected,” he said in an address on Sunday evening.
He said the government recognizes that Ghana’s financial institutions hold a substantial proportion of these bonds, “as such, the potential impact of this exchange on the financial sector has been assessed by their respective regulators. Working together, these regulators have put in place appropriate measures and safeguards to minimize the potential impact on the financial sector and to ensure that financial stability is preserved.”
“Specifically, the Bank of Ghana, the Securities & Exchange Commission, the National Insurance Commission, and the National Pensions Regulatory Authority will ensure that the impact of the debt operation on your financial institution is minimized, using all regulatory tools available to them.” he said.
Source: theGhanaianVoice.Com