President: No one will lose investments in govt instruments

President Nana Addo Dankwa Akufo-Addo has assured all Ghanaians that no one will lose investments in government securities.

According to him, no individual or institutional investor, including pension funds, invested government treasury bills or instruments will lose their money, as a result of ongoing negotiations with the International Monetary Fund (IMF).

“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,” he assured.

President Akufo-Addo gave the assurance in a televised address to update the public on measures being taken to tackle the economic challenges confronting the country.

He warned that the organs of State would rein in speculators, whose false narratives on social media, predicting a reduction in the interest to be gained on their investments in Government bonds and treasury bills, had led to the further deprecation of the Cedi.

“All of us can play a part in helping to strengthen the Cedi by having confidence in the currency and avoiding speculation. Let us keep our Cedi as the good store of value it is.

“To those who make it a habit of publishing falsehoods, which result in panic in the system, I say to them that the relevant State agencies will act against such persons,” he cautioned.

At meeting with the Bank of Ghana, the Ghana Association of Banker revealed that the ongoing discussions between government and the International Monitory Fund (IMF) for a $3 billion loan facility is increasing speculations over Ghana’s debt sustainability status.

According to them, speculations about a possible debt restructuring resulting from engagements with the IMF have created uncertainty around Ghana’s bonds.

This uncertainty has fueled exit from securities.

Earlier, the Ministry of Finance has refuted widely published claims that government is planning to issue a 94% discount of Tier 2 pension investments in government securities.

The Ministry dissociated itself from widely circulated media publications encouraging a switch from securities to forex as a store of value.

It stated that these publications and social media advisories are without merit and are designed to undermine investor confidence in Ghana’s financial sector and contribute to pressures on the currency.

Meanwhile, the Ministry of Finance has issued new caution to the public against the spread of falsehoods and misrepresentations, which is weakening national efforts to ensure macroeconomic stability.

Such publications come amid the ongoing negotiations between the Government and the International Monetary Fund (IMF) for the Fund’s loan support programme to help Ghana navigate through the current economic hardship.

The publications include the allegation that the Ghana-IMF negotiations is not going well, there is no programme for consideration by the IMF and that there are inaccuracies in the figures presented to the IMF by the Government

However, in a statement issued and copied to Ghana News Agency on Sunday, the Ministry said the spread of falsehoods and misrepresentations, which was gaining notoriety in various recent public discourse was untrue.

“We caution that such falsehoods contribute to the erosion of stability in the Ghanaian economy and could unduly hold back the strong progress of negotiations so far,” the Ministry said.

It, therefore, urged all who engage in public discourse on the current state of the economy and the IMF negotiation, particularly journalists, to verify claims related to the ongoing IMF negotiations from  official dedicated websites.

“Well-meaning Ghanaians are entreated to disregard false narratives, and instead refer to official communications from the Ministry of Finance and the IMF,” the statement read.

It also called to the use of “responsible in utterances related to the IMF negotiations,” and assured that the Government is working assiduously to complete negotiations and restore the economy to macroeconomic stability.

Referring to publications of the IMF on negotiations done so far, the Ministry said among others that constructive discussions on policies aimed at restoring macroeconomic stability had been made.

It also noted that “good progress” had been made in identifying specific policies that would help restore macroeconomic stability, with both the IMF team and the Ghanaian authorities still being fully committed to reaching agreement on a framework and policies for an IMF by the end of 2022.

On the issue of figures presented to the IMF as part of Debt Sustainability Analysis, and for a possible loan facility, it said, “None but accurate figures have been presented to the IMF; and the Ministry has been fully transparent at all times.”

“The Ghanaian negotiation team remains credible and highly respected and has enjoyed great cooperation from the IMF. To suggest otherwise is false, misleading and pure mischief which must be ignored,” the statement emphasised.