Wed. Jun 29th, 2022
bonds

Ghana isn’t doing well in the bonds market. Sadly, a similar incident happened in 2019 where the country injected $150 into banks as bonds sale plans flopped. People are currently pinpointing the Member of Parliament for Ningo – Prampram, Sam George as the cause for this year’s fate.

About a week ago, the Minister of State at the Ministry of Finance, Mr Charles Adu Boahen has expressed that even though the turnoff is a global crisis, Ghana’s own is beyond normal.

“I’m sure you all notice the global sell-off in our Eurobonds in the international stock market. There’s been a general sell-off but I am sure those of Ghana has been quite pronounced.”

Meanwhile, the Minister stated that “I want to assure the audience that nothing fundamentally has changed; we’re still on track to meet our deficit, we are still on track to meet our revenue target for the year.” He said at an event that was scheduled to look for resolutions for the changes economy ahead of the 2022 budget presentation.

According to critics, it’s Sam George’s pursuit for the anti-LGBTQ bill that has caused the flop. They argue that it has compelled investors to turn away from the market. Analysts have concluded that the bill can have a serious adverse impact on the nation’s economy. So, possibly, this is one. Prior to this current incident, there were reports that some European countries were denying some MP’s visas. Precisely those that were in favour of the bill.

Coming to Sam George’s defence, Felix Kwakye Ofosu deemed it’s ridiculous for the government to pick on the MP. That is, the government should take responsibility for its own mismanagement of the economy.

“This is the most ridiculous excuse any government has put out for its own horrible performance. The reason our bonds are being shunned like a plague is that investors have no confidence in our ability to repay because of the terrible state of the economy and our finances.”

“Investors in the secondary bond market are also withdrawing their money and that is what is causing the cedi to the tank. Bawumia must own up for mismanaging the economy and stop inventing ridiculous excuses.” He defended his party member.

By Stanley Coffie

Stanley is a versatile writer, blogger, author and marketer. I'm optimistic and handle projects with integrity. Get in touch with me via coffiestanley@gmail.com

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