Investments including pension funds won’t be lost in IMF negotiations – Akufo-Addo

Government says it is taking steps to protect the investment of citizens as it pushes for a deal with the International Monetary Fund (IMF).

President Akufo-Addo expressed confidence in his negotiators to see through a bailout which will prevent the loss of funds of persons and institutions that have invested in various public funds.

“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,” he said on Sunday.

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This comes on the back of projections from financial analysts which have painted a gloomy picture for investors amid talks around the deal.

Ghana is currently at the doors of the IMF for a possible $3 billion bailout amid intensifying hardship, skyrocketing fuel prices, a rising cost of living and a depreciating cedi.

Some have pointed to a possible haircut that will see investors losing portions of their funds as part of possible debt restructuring measures which may come up in the ongoing talk with IMF.

A haircut refers to the lower-than-market value placed on an asset being used as collateral for a loan.

But President Akufo-Addo is allaying these fears.

In an address about modalities being explored to get the economy out of the downturn, President Akufo-Addo was optimistic that “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.”

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He has also hinted at possibly securing a deal with the IMF by the end of the year.

According to him, the country is likely to arrive at an agreement by December to get the crucial bailout it seeks.

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