Akufo-Addo first President to force Ghanaians into receiving crude haircuts – Ablakwa

The Member of Parliament(MP) for North Tongu Constituency, Samuel Okudzeto Ablakwa has chastised the Akufo-Addo-led administration over the woes of the Ghanaian economy he claims is collapsing while the exchange rate is deteriorating, which resulted in crude haircuts for investors.

He is particularly disturbed that Ghanaians have had to lose their investments through such haircuts announced by the Ministry of Finance blaming everything on the mismanagement of the country’s resources.

Speaking during TV3’s Community Manifesto, Sam Okudzeto Ablakwa expressed worry over how the Ghana Cedi has depreciated gradually and how a Dollar is now selling at GHc16 in the market.

“For the first time in our country’s history, people are being compelled to take crude financial haircuts. Everybody is feeling the heat after the “so-called economic messiah” Dr Bawumia has destroyed the economy. We are all living under a bankrupt economy”. He lamented

The lawmaker disclosed that some market women complained bitterly to him during his tour around the market in the constituency about the hikes in the prices of prices as compared to prices in 2016.

He urged Ghanaians not to blame the market women for the increase in food prices because they are not to be blamed for the worsening exchange rate.

Bondholders receive 30%-40% of haircuts

In October last year, Ghana submitted debt restructuring scenarios to bondholders which included a haircut of 30% to 40% on principal, a coupon of not more than 5%, and a final maturity of not more than 20 years.

The country’s sovereign dollar bonds suffered sharp falls across the curve following the news, with some down more than 1 cent in the dollar, reflecting some investors’ disappointment with the proposal.

Ghana at the time, was aiming to restructure $20 billion out of total external debt which was about $30 billion at the end of 2022, according to a government presentation to investors.

The International Monetary Fund (IMF) then had hoped Ghana will reach a debt restructuring agreement with bilateral creditors within six to eight weeks, an official at the Fund said.

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