"Re-assurance from IMF, Gov\u2019t fails to prop-up investor confidence in domestic debt market"

" \n Re-assurance from IMF, Gov\u2019t fails to prop-up investor confidence in domestic debt market \n \n\n \n Assurance from the International Monetary Fund (IMF) to fast-track processes to help Ghana secure the much talked about $3bn BoP support programme has failed to boost investor confidence in the economy. \n \n\n \n Managing Director of the IMF, Kristalina Georgieva, has in past interviews expressed commitment to ensuring that Ghana secures an economic programme before the end of this year. \n \n\n \n Over the week, the IMF Director for Africa, Abebe Selassie during a press briefing expressed the same commitment saying the IMF is doing everything to fast track the process for Ghana. \n \n\n \n Government, has also played its role in assuring investors of securing an economic programme from the IMF to help mitigate the country\u2019s prevailing adverse macroeconomic conditions. \n \n\n \n It has also come out to debunk media reports suggesting that over 94% of the Tier 2 pensions (over GHS 3bn) will be affected by the planned domestic debt restructuring by government. This was done so as to calm the market and let investors know that their investments are safe. \n \n\n \n But despite the many assurances given by the IMF and government, it has failed to prop-up investor confidence in the domestic market. \n \n\n \n This is evidences by government\u2019s inability to meet its auction target of GHS 1,088m in the issuance of the 91, 182 and 364 days T-Bills last week. \n \n\n \n Government in the said auction, only managed to secure GHS 973m falling below its target by GHS 115m. \n \n\n \n Bids tendered in for the 91, 182 and 364 day T-Bills were GHS 830m, GHS 94m and GHS 49m respectively. \n \n\n \n The short term debt instruments were auctioned at interest rates of 31.9%,32.9% and 32.9% respectively. \n \n\n \n Auctresults-1820 by Fuaad Dodoo on Scribd (function() { var scribd = document.createElement(\"script\"); scribd.type = \"text\/javascript\"; scribd.async = true; scribd.src = \"https:\/\/www.scribd.com\/javascripts\/embed_code\/inject.js\"; var s = document.getElementsByTagName(\"script\")[0]; s.parentNode.insertBefore(scribd, s); })(); \n \n\n \n \u201cWe\u2019ll fast track economic support for Ghana \u2013 says IMF Africa boss \n \n\n \n The International Monetary Fund (IMF) has assured that it will fast track processes with the Government of Ghana to provide support for the country through an economic programme. \n \n\n \n The Head of the African Department, Abebe Selassie announced this during the release of the African Economic Outlook Report in Washington DC on the sidelines of the Annual IMF\/World Bank meetings. \n \n\n \n Reiterating IMF\u2019s commitment to working with Ghana, Mr. Selassie stated that the Fund put together a mission immediately after Ghana made a request for support. \n \n\n \n \u201cI can tell that we are doing our best, and will do our utmost to ensure that we can provide support for Ghana as quickly as possible\u201d, he said. \n \n\n \n \u201cWe will do our best to avoid any delays when it comes to Ghana\u2019s programme\u201d, he added. \n \n\n \n Debt restructuring won\u2019t affect 94% of Tier 2 pension investments \u2013 Gov\u2019t \n \n\n \n The Ministry of Finance has refuted claims that about 94% of Tier 2 pension contributions placed in government securities will be affected by debt restructuring moves by the government. \n \n\n \n Government as part of processes for securing support from the International Monetary Fund is currently conducting a debt sustainability analysis and there are fears investments in government securities may be affected. \n \n\n \n The reports suggested that about GH\u00a23.7 billion of the GH\u00a23.9 billion Tier 2 pension contributions placed in government securities may be affected by the Debt Restructuring Programme. \n \n\n \n In a statement, the Ministry of Finance said such fears and publications were without merit and do not auger well for the country\u2019s financial sector. \n \n\n \n \u201cThese publications and \u201csocial media advisories\u201d are without merit and are designed to undermine confidence in Ghana\u2019s financial sector,\u201d the Ministry stressed in the statement. \n \n\n \n The Ministry assured that the Government\u2019s engagements with the IMF, \u201cboth in Accra and in Washington, D.C., on a Programme to restore macroeconomic stability, are progressing steadily.\u201d \n \n\n \n \u201cWe, therefore, encourage all Ghanaians to disregard these publications, which are in no way reflective of the progress of work being done with the IMF.\u201d \n \n\n \n The Ministry further asserted that it had always protected investors\u2019 interests in the financial sector. \n \n\n \n \n "

"Re-assurance from IMF, Gov\u2019t fails to prop-up investor confidence in domestic debt market"

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