Gov’t shot itself in the foot with talk of haircuts

The Member of Parliament for Cape Coast South, Kweku Ricketts-Hagan, believes the government’s talk of haircuts on investments as part of debt restructuring was premature.

“You have not started the negotiations, then you pre-empt yourself in the negotiations by making a statement that there is not going to be a haircut. You have shot yourself in the foot,” he said on The Big Issue on Citi TV.

After the president’s assurances of no haircuts with respect to money invested in bonds during a speech last week, the government clarified that the restructuring was yet to be finalised.

The President said the statement was in response to rumours and speculation.

The restructuring talks are ongoing as part of Ghana’s efforts to secure an IMF deal for $3 billion.

In the wake of the speech, Mr. Rickets-Hagan said this was further evidence that the Akufo-Addo administration does not understand the government it is running.

He felt there was no need for the government to be paying attention to speculation at this point.

Mr. Rickets-Hagan added that the speculation was only a consequence of the poor management of the economy.

“They are behind the economy they are running. You shouldn’t be worried too much at this stage about speculation.”

“Speculation is going to happen when there is uncertainty. Speculation happens when people don’t have confidence in your economy; when your policies are no longer credible,” the MP said.

https://www.youtube.com/watch?v=/XodKnEUlMuE