Former Deputy Communications Minister Felix Kwakye Ofosu has alleged that holders of government bonds will not be paid any interest for the whole of 2023.
Speaking in an interview on Good Morning Ghana, monitored by GhanaWeb, Kwakye Ofosu also said that foreigners who have invested in government bonds will also see their investment slashed.
He urged Ghanaians who live on interest from bonds they have invested in to prepare themselves for a hard time because the 'haircut' the government has denied will be happening.
“It is almost cast in stone that external bondholders are going to suffer a 30 percent cut in their principal and a 20 percent cut in their coupon rate or interest rate. The maturity date for their bonds will be extended by 20 years.
“For domestic holders, for the whole of 2023 there will be no interest payment, In 2024 they will get 5 percent, (and) in 2025 they will get 10 percent. This is not what you agreed with them, this is a haircut,” he said.
He accused President Nana Addo Dankwa Akufo-Addo of lying to Ghanaians when he said his government would buy off government bonds at rates lower than their expected returns, i.e., "haircut on Government bonds."
“… the president of Ghana has stood on national television and told us that there will be no haircuts. So even the credibility of this government is in tatters. You cannot believe what the president tells you,” he said.
Meanwhile, the Ministry of Finance has announced the government is looking into the possibility of conducting a debt operation that will cover the terms of payments of principal and interest on public debts (government bonds) – 'Haircut'.
The ministry indicated that the move will help reduce the pressure on the government's budget and also make the nation's debts sustainable.
In a press release dated November 24, 2022, the ministry added that it will announce details of the debt operation in due course.
Watch the interview below:
Watch the second part of Elvis Afriyie Ankrah's interview on GhanaWeb TV below:
Also watch the nomination for the GhanaWeb Excellence Awards Youth Edition below:
