Finance
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.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
Ofori-Atta appeals to Parliament to approve revenue measures

Finance Minister Ken Ofori-Atta has informed parliament of his intention to present necessary fiscal adjustments to the house in august after the debt operation is completed.
Outstanding revenue mobilisation bills
Already, he said the Income Tax (Amendment) Bill, Excise Duty & Excise Tax Stamp (Amendment) Bills as well as the Growth and Sustainability Levy Bill, are outstanding in Parliament.
According to him, the consideration and approval of fiscal measures by Parliament are critical for recovery from the current economic crisis.
Facilitating IMF Board approval
The Minister therefore entreated Parliament to prioritise the approval of the outstanding revenue mobilisation bills to facilitate the Board Approval for International Monetary Fund (IMF) Programme staff level agreement by the end of March, 2023.
“We are still counting on you for the passage of all the outstanding revenue Bills which are necessary for effective Budget Implementation as well as boosting our efforts at increasing our Tax-to-GDP from less than 13% to the sub-Saharan average of 18,” he stated.
Expected impact of IMF Board approval
He is confident IMF Board approval will restore macro-economic stability, ensure debt sustainability as well as provide critical social protection for the benefit of Ghanaians.
Factors that impacted economy negatively
COVID-19, Russia-Ukraine war, soaring energy and food prices, higher interest rates, a strong dollar and a global slowdown negatively affected the economy.
Ghana seeking $3 billion loan
Ghana and the International Monetary Fund (IMF) have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.
But, the IMF has made it clear that the Board approval of the deal is contingent on a successful debt exchange programme.
Broader govt response strategy
Addressing Parliament on the ongoing debt restructuring efforts, Ofori-Atta explained that debt operations are a composite part of a broader government response strategy for addressing the current challenges.
While being optimistic about IMF programme to boost confidence in the economy, he emphasized that complementing it with enhanced domestic mobilisation efforts is critical.
4 out of 5 agreed Prior Actions in the Staff Level Agreement
The Finance Minister averred that the passage of the Bills will enable government to complete four out of five agreed Prior Actions in the Staff Level Agreement.
Agreed Prior Actions already implemented
He noted that tariff adjustment by the Public Utilities Regulatory Commission (PURC), Publication of the Auditor-General’s Report on COVID-19 Spending, and Onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF) and Road Fund on the Ghana integrated financial management information system (GIFMIS) have all been completed.
International and domestic bond markets are shut
Ofori-Atta reminded the legislators that the international and domestic bond markets are shut for the financing of government’s programmes, forcing government to rely on the Treasury Bills and concessional loans as the primary sources of financing for the 2023 fiscal year.
Therefore, he called on Parliament to support the government’s financing requests to ensure a smooth recovery from the economic challenges.
He thanked everyone who tendered and supported the Domestic Debt Exchange programme saying “It is a truly remarkable act of sacrifice in our nation’s history. We thank those who heeded our clarion call and took the selfless, patriotic decision to participate. Your names and deeds will never be forgotten. Your timely support is deeply appreciated,”.
He is confident that the programme government has set out for this year, supported by Parliament, will get Ghana out of the economic crisis that has hit the economy since Covid-19.
Inflation interest and exchange rates to stabilise
He hopes for stability in the exchange rates, inflation and interest rates, bringing businesses and families some respite.
Suspension of payments of interest on foreign debt
Government also announced a suspension of all debt service payments for certain categories of external debt, pending an orderly restructuring.
International bondholders
Ofori-Atta revealed that Ghana initiated discussions with representatives of international bondholders and their Advisors.
According to him, substantive discussions are due to start with them in the weeks to come.
G-20 Debt Treatment initiative
Ghana officially asked its bilateral creditors for a Debt Treatment initiative under the G-20 Common framework.
Negotiations with commercial creditors underway
The Finance minister said the process of negotiations have started in good faith with commercial creditors.
Ofori-Atta stated that two preliminary discussions and exchange of information have started on a good footing with representative committees and advisors.
Creditor Committee to assess Ghana’s request
According to him, the members have indicated their commitment to establish a Creditor Committee to assess Ghana’s request for debt treatment under the Common Framework by end February, 2023.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
IMF assigns resident financial supervision adviser to BoG

The International Monetary Fund (IMF) has assigned a Resident financial sector supervision adviser to the Bank of Ghana (BoG) to provide technical assistance and help build the capacity of the banking supervision function.
The appointment was at the request of Bank of Ghana with full funding from Switzerland’s State Secretariat for Economic Affairs (SECO).
Mr. Leonard Chumo, the Resident Adviser, started his assignment at the Bank of Ghana on February 6, 2023, and was expected to stay for three years.
A statement issued by BoG in Accra said the Adviser’s placement was a continuation of cooperation in this area between the Bank, the IMF and SECO, that started as early as in 2015 and had already seen the assignment of a previous Adviser until 2018.
It said achievements from the past collaborative efforts include the passage of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the development and issuance of the Corporate Governance Directive 2018, and the Capital Requirement Directive 2018.
Mr Chumo, brings first-hand knowledge of supervisory work from leading central banks as well as previous technical assistance experience in the Western Africa region.
The statement said among others, he would support the implementation of Pillar two and three of the Basel II/ III capital frameworks, as well as strengthen the Risk-Based Supervisory framework at the Bank of Ghana.
The Bank commended the management of SECO for the continued funding of Long-Term Technical Experts from the IMF to the Bank.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
Finance
Govt pledges to pay coupons, principals on all maturing bonds

Government has assured all bondholders, including those who self-exempted from the voluntary Domestic Debt Exchange Programme (DDEP) that it will honour all coupon payments and maturing principals when due.
Payment of coupons and principal for bonds that matured since February 6 to date (herein referred to as ‘Due Bonds’ remain outstanding.
Bondholders want government to make payments not later than Friday, February 17, 2023.
A statement issued by the Finance Ministry indicates that more than 80% bondholders participated in its $137 billion DDEP.
“The DDEP closed on Friday February 10, 2023, with over 80% participation of eligible bonds,” it said.
The Finance Ministry pledged to honour all coupon payments and maturing principals in addition to commitments to further streamline Government’s expenditures.
“We would like to stress that, all Individual bondholders, especially our Senior Citizens, should rest assured that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitments.
“The Government would like to reassure all individual bondholders who elected not to participate that your coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government fiscal commitments,” it added.
Government reiterated that the DDEP had been executed to help protect the economy and enhance Ghana’s capacity to service its public debts effectively, as its debt had become unsustainable.
The alternative for not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis.
It expressed gratitude to bondholders for the overwhelming participation, adding that their support and contributions had gotten Ghana much closer to securing the International Monetary Fund (IMF) programme.
There are fears that those who opt against signing up are not guaranteed market liquidity for the old bonds, because they are likely to become less tradeable on the secondary market compared with the new bonds.
On the other hand, individuals who sign up for the new bonds will have more certainty even in a changing economic landscape.
- National honours conferred on COVID-19, ITLOS champions – 15 March 2023
- Misinformation undermining democracy, eroding gains in Ghana – 14 March 2023
- Dr Akoto: With right investment in agric, Ghana will not need IMF – 14 March 2023
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