How will you bring down public debt from the unsustainable level? – Ato Forson asks Akufo-Addo

Member of Parliament for Ajumako-Enyan-Esiam, Cassiel Ato Forson has asked the President to explain how he is going to bring down public debt.

He said at least investors will want to know he will do it without haircut.

In a tweet reacting to the public address by the President, Mr Ato Forson who is also a former Deputy Finance Minister said “Mr Prez, How will you be able to bring down the public debt from the unsustainable level of 105% of GDP to 55% of GDP by 2028 ? At least tell us how you will do this without a haircut on the interest or principal of domestic and foreign Debt? Investors will like to know!”

President Nana Addo Dankwa Akufo-Addo has assured that no investor will lose his or her money including pensions funds, government treasury bills or instruments if Ghana finally seals a deal with the International Monetary Fund (IMF).

Mr Akufo-Addo noted that some members of the public have concerns that they will lose their investments if the deal with the Fund is closed,

But delivering an address to the nation on Sunday October 30, Mr Akufo-Addo allayed the fears saying, just as customers’ deposits were saved during the banking sector clean up exercise, no one will lose money in this also.

He said “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.

“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.”

Information Minister Kojo Oppong Nkrumah said that the President’s assurance that there will be no haircuts covers on principals.

“My understanding is that no principals will be touched. No principals will have a haircut,” Mr. Nkrumah said.

“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.