President Nana Addo Dankwa Akufo-Addo has assured that no Ghanaian or institutional investor, including pension funds in the government treasury bills or instruments, will lose their money, as a result of the government's ongoing negotiations with the IMF.
President Akufo-Addo said there would be no "haircuts", and urged Ghanaians to ignore the false rumours instigating the fear among Ghanaians and the investor community that, they would lose their investments.
The country's fiscal and debt levels are approaching unsustainable levels which had raised concerns in the investment community culminating in the degrading of the country's credit ratings.
There have been some agitations by some public sector workers that, their pension Funds in Government treasury bills and instrument would be affected by the government's negotiations with the IMF and the possibility of a so-called domestic debt restructuring.
But in his address to the nation on measures taken to resolve Ghana's economic crisis and to ameliorate the sufferings of Ghanaians on Sunday, the President said "just as in the banking sector clean-up, the government would ensure that no one, including pension funds losses their investments."
An anonymous two-minute audio message on a WhatsApp platform predicting a so-called haircut on the government bonds sent all of us into banks and forex bureaus to dump our cedis, and, before we knew it, the cedi had depreciated further.
"We are in a crisis, I do not exaggerate when I say so. I cannot find an example in history when so many malevolent forces have come together at the same time.
"For us, in Ghana, our reality is that our economy is in great difficulty. The budget drawn for the 2022 fiscal year has been thrown out of gear, disrupting our balance of payments and debt sustainability, and further exposing the structural weaknesses of our economy," the President stated.
But, President Akufo-Addo said that as the government had shown in the past circumstances, "we shall turn this crisis into an opportunity to resolve not just the short-term, urgent problems, but the long-term structural problems that have bedevilled our economy."
The government, the President indicated, was determined to secure an IMF arrangement quickly to bring back confidence in the economy and relief to Ghanaians.
"We are working towards reaching a deal with the IMF by the end of the year. This will give further credence to the measures the government is taking to stabilize and grow the economy, as well as shore up our currency," he noted.
At the just-ended Cabinet Retreat at Peduase Lodge, President Akufo-Addo said the government had agreed on the framework for the Post COVID-19 Programme for Economic Growth and the IMF support for its implementation.
Among the decisions taken include: restoring and sustaining debt sustainability--reducing Ghana's total public debt to GDP ratio to some 55% in present value terms by 2028, with servicing the external debt pegged at not more than 18% of annual revenue also by 2028.
Also, to improve the revenue collection effort, from the current tax-revenue to GDP ratio of 13% to between 18-20% to be competitive while the GRA roll out measures to support this enhanced revenue mobilisation.
"We are aiming to restore and sustain macroeconomic stability within the next three to six years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor."
More also, the President said the government would review the reforms in the energy sector, "capping of statutory funds, implementation of the exemptions Act and a new property rate regime."
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He said the government would continue with the policy of a 30% cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023, "just as we will continue with the 30% cut in discretionary expenditures of Ministries, Departments and Agencies."
His ambitions for Ghana, President Akufo-Addo averred, remained high, adding: "all our children should be educated and trained with skills that will enable us to be competitive in the world."
"We need to close rapidly the infrastructure gap, we need to build a world-class healthcare system and we need to build confidence in ourselves to make ours the happy and prosperous place it deserves to be.
"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," the President stated.
