Business General

Govt has lost credibility – Senyo Hosi

Businessman and analyst, Mr Senyo Hosi has said the government has lost credibility for what he believes is the U-Turn on the President’s comments regarding haircuts.

He was commenting on the clarification given by Information Minister Kojo Oppong Nkrumah on the President’s comment on haircut.

Mr Oppong Nkrumah said President Nana Addo Dankwa Akufo-Addo’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.

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.”

Commenting on this in a tweet, Mr Senyo Hosi said “HAIRCUT: A reduction in the interest or bond payable (principal) that will not be repaid. So what else can the President mean when he says ‘No Haircuts’?

“With this U-turn, GoG credibility is lost and sets the market for more run for the $, crush in bonds, & investment in physical assets.”

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