There will be haircut; Akufo-Addo goofed – Dr Ato Forson

Ato Forson
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Ranking Member on Parliament’s Finance Committee, Dr Cassiel Ato Forson has challenged President Akufo-Addo’s no ‘haircut’ comment in the country’s debt restructuring.

On Sunday, President Akufo-Addo in his address on measures the government was considering to curb the current economic crisis, said there will be no loss of funds of persons and institutions that have invested in various public schemes.

IMF negotiations: No ‘haircuts’ in investments including pension funds – Akufo-Addo

According to him, steps would be taken to protect the investment of citizens as the government pushes for a deal with the International Monetary Fund (IMF).

In an interview on Joy FM’s TopStory on Monday, the opposition MP said there would definitely be a ‘haircut’.

This he explained, is because the ‘haircut’ would be needed when securing a deal with the International Monetary Fund (IMF).

“I can say on some form of authority that there would be some form of a haircut. Clearly, someone is not briefing the President properly or probably the writing did not come out well. ‘The President goofed’, he shouldn’t have said it in a categorical manner,’” he said.

According to the former Deputy Finance Minister, the President’s comments have rather added to the uncertainties in the market.

He claimed that the President will backtrack on the ‘haircut’ position in the same way that the IMF conversation resulted in a u-turn in the end.

Akufo-Addo’s assurance of no ‘haircuts’ covers just principal – Oppong Nkrumah

Meanwhile, Information Minister, Kojo Oppong Nkrumah says President Akufo-Addo’s assurance of no ‘haircuts’ with investments in bonds covers just the principal.

According to him, that is the understanding he has on the issue.

“My understanding is that no principals will be touched. No principals will have a haircut,” he said in an interview with Citi FM on Monday.

The Ofoase-Ayirebi MP, however, added that when the policy is announced fully, there will be better clarification.

“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.

Dr. Forson however wondered how the President could say that there will be no ‘haircut’.

“I don’t know the basis on which the President made that statement. If you run the math, it does not add up and I would be surprised that Ghana will get an IMF programme without a haircut,” he added.



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