Finance Ministry hints of “extreme fiscal discipline” going forward

The Ministry of Finance says “Fiscal discipline will be extremely Key going forward following the possible haircuts on all bonds and treasury bills over government’s debt.

This statement is in line with the debate about possible haircuts on all bonds and treasury bills following government’s debt restructuring deal with the International Monetary Fund (IMF).

Speaking at the launch of the Debt Exchange Programme in Accra on Monday, December 5, the Chief Economics Officer and Director of Treasury and Debt Management Division at the Finance Ministry, Samuel Danquah Arkhurst, said “Fiscal discipline will be extremely key going forward.”

Samuel Danquah Arkhurst said the programme has become necessary because of the enormous challenges with debt servicing.

He added that fiscal discipline is going to be key in its dealings especially as the International Monetary Fund (IMF) is coming onboard to assist the country to deal with the challenges.

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In a public address on the recent debate about possible haircuts on all bonds and treasury bills following government’s debt restructuring deal with the International Monetary Fund (IMF), Mr. Ofori-Atta said government will ensure that people’s investments are safe.

“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,” Ofori-Atta said in an address on Sunday evening.

He, however, said the external debt restructuring parameters would be presented in due course.

“Specifically, the Bank of Ghana, the Securities & Exchange Commission, the National Insurance Commission, and the National Pensions Regulatory Authority will ensure that the impact of the debt operation on your financial institution is minimized, using all regulatory tools available to them.”

Ghana | Atinkaonline.com | Vivian Adu

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