Akufo-Addo’s assurance of no ‘haircuts’ covers just principal – Oppong Nkrumah

Information Minister, Kojo Oppong Nkrumah says President Akufo-Addo’s assurance of no ‘haircuts’ with investments in bonds cover just the principals.

According to him, that is the understanding he has on the issue.

“My understanding is that no principals will be touched. No principals will have a haircut,” he said in an interview with Citi FM on Monday.

The Ofoase-Ayirebi MP however, added that when the policy is announced fully, there will be better clarification.

“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.

President Akufo-Addo on Sunday during an address to the nation on measures his government is considering to curb the current economic crisis said there will be no loss of funds of persons and institutions that have invested in various public funds.

According to him, steps will 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,” he said on Sunday.

His assurance was on the back of projections from financial analysts which have painted a gloomy picture for investors amid talks on 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 talks with the IMF.

However, President Akufo-Addo has allayed those fears.