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Wednesday, July 24, 2024

End of Debt restructuring brings some certainty into financial market – Peter Quartey

Director at the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Prof Peter Quartey says the country official completion of debt restructuring to official creditors will restore some certainty in the financial market.

Finance Minister Dr Mohammed Amin Adam  announced the completion of Ghana’s debt restructuring programme with its official creditors.

According to the Member of Parliament for Karaga, the government has successfully restructured its debt of 5.1 billion dollars with these creditors, in addition to concluding the restructuring of 13.1 billion dollars with Eurobond holders.

Addressing attendees at a UK Town Hall meeting, Dr Amin Adam highlighted that these efforts have resulted in savings of 8 billion dollars for the country.

“Last two weeks, we concluded negotiations with the official creditors, and we have agreed to restructure 5.1 billion dollars. I am telling you that the government is good in negotiations and of this amount, we are going to make savings of $2 billion.”

“As I speak to you, tomorrow morning, there will be an announcement that we have also concluded our negotiations with the Eurobond Holders of $13.1 billion, and ladies and gentlemen, when we announce it, please read the details. We have negotiated a good deal for Ghana and that is $8 billion,” he said.

Professor Quartey said this announcement was long awaited and would restore some certainty to the financial market.

“Well, this announcement brings some level of certainty to the market because we have been waiting for it for far too long. Many investors, both individual and cooperate investors, have been waiting for this news. You know uncertainty affects the financial market.

“Financial system doesn’t like noise, It doesn’t like uncertainty and so for me clears the way for   many things to happen. More inflows may come in. It also clears the way for people to invest properly, and also it will certainly have some positive effect on the exchange rate and by extension inflation,” he said.

Speaking on Joy FM’s Top Story on June 24, Professor Quartey said it was good news and advised the government to ensure they do not overspend.

“In as much as it is good news for Ghana, we also have to be responsible going forward,” he added.

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