There will be no “haircuts”- Akufo-Addo

The President Nana Addo Dankwa Akufo Addo has assured that no investor will lose any money as a result of the ongoing negotiations with the International Monetary Fund (IMF) for a bailout.

Addressing the nation on the economy on Sunday (30 October), President Akufo-Addo said “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.”

“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.”

The president also said his government is committed to reducing the country’s debt adding “To restore and sustain debt sustainability, we plan to reduce our total public debt to GDP ratio to some 55% in present value terms by 2028, with the servicing of our external debt pegged at not more than 18% of our annual revenue also by 2028.”

Revenue generation

The president said the government is also committed to improving the revenue collection effort, from the current tax-revenue to GDP ratio of thirteen (13%) to between eighteen and twenty percent (18-20%), to be competitive with our peers in the West Africa Region.

“The GRA is rolling out an extensive set of measures to support this enhanced revenue mobilisation. All of us must do our patriotic duty, and support the GRA in this exercise.”