Ghana President assures of “no debt haircut” with IMF talks

President Nana Akufo Addo of Ghana has reassured investors that the ongoing talks with the International Monetary Fund, IMF, will not lead to a possible reduction in the country’s government bonds.  

Ghana is currently facing an economic crisis that has seen its local currency; the Ghana Cedis plummet by over 40% and consumer inflation hit a new year high of 37.2% since September; a depreciation record level, even after a repeated increase in borrowing rates.

President Akufo Addo gave the reassurance, in a move to boost the confidence of Ghanaians and the market (investors), that his government is capable of handling the economic crisis that has forced it to resort to sources for international financial aid.

“The talks are at advanced stages and are going well.

“No individual or institution investor will lose their money as a result of our ongoing IMF negotiations. There will be no haircuts” Akufo Ado said, adding that reports of such possible restructuring were “false rumors”.

What else?

Akufo Ado revealed that his government aims to restore macroeconomic stability within the next three to six years and to cut the debt-to-GDP ratio to 55% by 2028.

“I believe we can and we will find the means to achieve these goals, even if the immediate measures we have to take are painful” he added.