Ken Ofori-Atta: Finance Minister Assures There Will Be No Haircut On Treasury Bills, Principal Bonds

Ken Ofori-Atta: Finance Minister Assures There Will Be No Haircut On Treasury Bills, Principal Bonds

  • The Akufo-Addo-led government has assured that there will be no haircut on investments
  • This comes as the government rolls out its domestic debt exchange programme as part of the ongoing IMF negotiations
  • The Finance Minister, in a public address on Sunday, said there would be no haircut on treasury bills and principal bonds

The minister of finance, Ken Ofori-Atta, has assured that there will be no haircuts on investments as the government rolls out the much-touted domestic debt exchange programme.

According to the minister, enough measures have been put in place to minimize the impact of the country’s domestic debt exchange on investors.

The Finance Minister has assured that there will be no haircuts on treasury bills and principal bonds as the government begins the domestic debt exchange programme
Finance Minister Ken Ofori-Atta Image Credit: @yesmeen.tetteh.9
Source: Facebook

Ken Ofori-Atta: Haircuts Will Not Affect Principal Of Bonds

Making the announcement in a televised message to Ghanaians on Sunday, December 4, 2022, Ofori-Atta said the “haircuts” would not affect the principal of bonds, saying individuals with government bonds will have their entire investments on maturity.

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“Treasury Bills are completely exempted, and all holders will be paid the full value of their investments on maturity. There will be no haircut on the principal of bonds. Individual holders of bonds will not be affected,” he said.

IMF Deal: Government Assures That Investments Of Ghanaians Are Safe

He also added that with the debt restructuring deal, which is in line with the ongoing negotiations with the International Monetary Fund (IMF), the government would ensure that people’s investments are safe.

Ofori-Atta also noted that the government would present the country’s external debt restructuring parameters in due course.

Ofori-Atta: Finance Minister Announces Plans To Swap Cedi Debts for New Bonds In Domestic Debt Exchange Scheme

Earlier, YEN.com.gh reported that Ken Ofori-Atta had announced to local bondholders that there would be losses on interest payments under the Domestic Debt Exchange programme.

The exchange programme is the debt restructuring programme that the government needs to introduce in order to get the $3 billion bailout loan from the International Monetary Fund (IMF).

The finance minister explained Ghana will swap existing local-currency debt with four new bonds maturing in 2027, 2029, 2032, and 2037.

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Source: YEN.com.gh

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