'No need for panic withdrawals; Your money is safe' - John Kumah assures Ghanaians

Deputy Finance Minister, John Kumah has asked Ghanaians not to panic following the announcement of government's domestic debt exchange programme.

"There's no need for panic withdrawals because the money will not be affected. Your money is safe in the bank," he said.

Domestic debt exchange programme

This programme seeks to help restore macroeconomic stability. However, there have been concerns that this will bring 'haircut' leading to more hardship for Ghanaians.

Finance Minister, Ken Ofori-Atta giving full details of the programme, said there will be no 'haircut' adding, "Treasury bills are completely exempted and all holders will be paid the full value of their investments on maturity. There will be no haircut on the principal of bonds. Individual holders of bonds will not be affected”.

No cause for alarm

Backing his Minister's comment, John Kumah said the domestic debt exchange will only affect institutions.

"It will only affect institutional bonds but individual bondholders won't be affected. There's no cause for alarm and there'll be no haircut . . . people's expectations will not be met on the interest side but it is to help in the long run. As far as the interest on the bond is concerned, due to the market value, this measure is not so negative. So if you're getting zero percent on your interest, within one year, the value will be restored to the original value," he said on Peace FM's morning show 'Kokrokoo'.

Meanwhile, he said the "Bank of Ghana has set up a liquidity support to assist banks in need".