The Ministry of Finance has denied assertions that the government’s efforts to restructure its debt will have an impact on 94% of Tier 2 pension contributions made in the form of government securities.
The government is currently conducting a debt sustainability analysis as part of procedures for obtaining support from the International Monetary Fund, and there are concerns that investments in government securities may be impacted.
According to the reports, the Debt Restructuring Programme may have an impact on GH3.7 billion of the GH3.9 billion in Tier 2 pension contributions invested in government securities.
The Ministry of Finance stated in a statement that such concerns and publications are unfounded and do not bode well for the nation’s financial sector.
It emphasised in the statement that “these publications and “social media advisories” lack merit and are intended to erode trust in Ghana’s financial sector.
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The Ministry gave the Government’s interactions with the IMF, “both in Accra and in Washington, D.C., on a Programme to restore macroeconomic stability, are progressing steadily,” according to the assurance.
“We, therefore, encourage all Ghanaians to ignore these publications, which are in no way indicative of the advancement of work being done with the IMF,” the statement continued.
The Ministry continued by claiming that it had consistently defended investors’ interests in the financial industry.
Read the full statement below
DISREGARD SOCIAL MEDIA ADVISORIES
Accra, Friday,14 October 2022.…. 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 contribute to pressures on the currency and undermine investor confidence.
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 Post- Covid Economic Growth Programme is designed to bring growth, stability and relief to our country.
We, therefore, encourage all Ghanaians to disregard these publications. which are in no way reflective of the progress of work being done with the IMF.
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.
The government will continue with this objective and ensure that investors’ best interests are upheld at all times.
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