The Director at the Institute for Statistical Social and Economic Research (ISSER), Professor Peter Quartey is urging the government to look out for a better alternative rather than going ahead with the 40% haircut on Eurobonds. 

According to him, the decision will adversely affect investor confidence in the economy.

Finance Minister, Ken Ofori-Atta, stated recently that Eurobond holders may face a nominal haircut of between 30% and 40% as part of the restructuring of the external debt.

According to him, coupons may also not exceed 5% with final maturities of not more than 20 years.

But the Director of ISSER, Professor Quartey, wants the government to get a better deal from the International Monetary Fund that will reduce the expected ‘haircut’ on Eurobonds.

Speaking at the launch of the State of the Economy Report for 2022 and the first three quarters of 2023 by his outfit, Professor Quartey said, “We’re in the IMF programme and there seems to be some positive signals for economy, but my concern is the recent announcement of a 40% haircut on Eurobonds. This I think will affect confidence in the economy because the Eurobond is not only subscribed by foreigners and so I will like to see a better alternative”.

“I checked with other countries under the IMF programme and it appears there is no condition for a haircut. Maybe they got a better deal than us” he noted.

The Director of ISSER also made suggestions for the upcoming 2024 budget, asking for a broader consultation to contain expenditure.

The launch of the report forms part of initiatives to engage stakeholders on the economy as well as give insight into the nation’s economy.

Although ISSER believes the economy is picking up, it wants a more innovative means to spur growth.