'Akufo-Addo goofed' – Ato Forson insists there will be 'haircuts' on investments

Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson

Dr Cassiel Ato Forson, MP, Ajumako-Enyan-Esiam, has insisted that Ghana’s debt restructuring will include the country experiencing some “haircuts” in order to curb the current economic crisis.

His view is contrary to that of the President Nana Addo Dankwa Akufo-Addo, who has stated categorically in his address to the nation on Sunday, October 30, that there will be no loss of funds of persons and institutions that have invested in various public schemes.

The president noted that steps would be taken to protect the investment of citizens as the government pushes for a deal with the International Monetary Fund (IMF).

“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. There will be no ‘haircuts’ so I urge all of you to ignore the false rumours, just as, in the banking sector cleanup, government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits,” President Akufo-Addo said.

But speaking on Accra-based Joy FM, the Ranking Member on Parliament’s Finance Committee, indicated that there would definitely be a ‘haircut’ as Ghana awaits a bailout from the IMF.

“I don’t know the basis the President made that statement and if you run the maths, it doesn’t add up and I will be surprised that Ghana will get an IMF programme without a haircut.

“I can say on authority that there would be some form of a haircut. Clearly, someone is not briefing the President properly or probably the writing did not come out well. ‘The President goofed’, he shouldn’t have said it in a categorical manner because what it has done is that, it has sent additional uncertainties to the market clearly indicating that someone is not on top of his job.

“I do not know how our debt will be sustainable by the year 2028 brings to over 100 per cent…clearly indicating that we are to [remove] 50 per cent of debt without a debt restructuring, it is impossible,” Dr. Ato Forson explained.


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