In the midst of Ghana’s deteriorating economy, the Finance Ministry has stated that it will not relent in its efforts to protect investors’ interests in the financial sector.
In a communiqué sighted by The Independent Ghana dated October 14, 2022, the ministry noted that the Akufo-Addo-led administration, keen on boosting the country’s fortunes, has implemented pragmatic policies to protect the interests of investors.
“For the avoidance of doubt, it must be recalled that the Government of Ghana, since 2017, has always protected investors’ interests in the financial sector. Government will continue with this objective and ensure that investors’ best interests are upheld at all times,” part of the statement read.
The Ministry’s communiqué comes at a time when the country’s economy has been faced with several fiscal challenges, such as ballooning debt and a surge in inflation.
The Ministry of Finance has reacted to publications speculating that about 94%
of Tier 2 pension contributions placed in government securities will be affected by debt restructuring policies by the government.
According to reports, the Debt Restructuring Programme may have an impact on the GH3.7 billion of the GH3.9 billion in Tier 2 pension payments invested in government securities.
The Ministry, in a statement dated October 14, 2022, stated that the publication is unfounded and is meant to undermine investor confidence in Ghana’s financial sector, which contributes to the cedi depreciation.
In an attempt to implement a debt restructuring program, the government has sought the assistance of the International Monetary Fund (IMF).
According to reports, the government will have to cut down on its expenditures by scrapping some policies.
Financial experts have projected that several government programmes, such as the Free Senior High School programme (free SHS programme), Planting for Food and Jobs (PFJ), and the YouStart programme, may be sacrificed.
In the same vein, some experts have projected that about 94% of Tier 2 pension contributions placed in government securities will be affected by debt restructuring moves by the government. However, the Finance Ministry has refuted such allegations.
Touching on the Tier 2 pension contributions publication, the ministry argued that the publication is without merit.
It says “the attention of the Ministry of Finance has been drawn to social media audiotapes and mainstream media publications speculating about a 94% discount of Tier 2 pension investments in government securities. Other publications also encourage a switch from securities to forex as a store of value.
“These publications and “social media advisories” are without merit and are designed to undermine confidence in Ghana’s financial sector. Indeed, they rather contribute to pressures on the currency and undermine investor confidence,” portions of the statement read.
The Ministry assured that the government’s engagements with the IMF, both in Accra and in Washington, D.C., on a programme to restore macroeconomic stability, are progressing steadily.
The Ministry of Finance, therefore, asked all Ghanaians to disregard these publications.
Source: The Independent Ghana