• About
  • Advertise
  • Privacy Policy
  • Contact
Friday, October 24, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Gov’t Urged To Further Negotiate With Eurobond Holders On Haircuts Proposition

M.Cby M.C
October 19, 2023
Reading Time: 4 mins read
M.Cby M.C
in Economy
0
Prof John Gatsi, Dean of the School of Business at the University of Cape Coast, has revealed that the reopening of borders by government will allow for economic activities to take place in the country and ensure revenue mobilization.

Professor John Gatsi, a lecturer at the University of Cape Coast School of Business.

Dean of the University of Cape Coast school of business, Prof John Gatsi, has underscored the relevance for further engagement with Eurobond holders on the haircuts proposition by government.

According to him, this is not the end of the negotiation process, and government must also not forget that creditor-borrower relationship is rooted in law.

Owing to this, Prof Gatsi stated that because government has borrowed the money and promised to pay coupons when they mature, it must go by the agreement.

RelatedPosts

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs

Government’s Bond Payments Drive Domestic Debt Surge — Now GH¢323.7bn and Counting

GSS Charges Gov’t to Protect ‘Stronger’ Women’s Role in Informal Trade

He explained that if government cannot go by the agreement, it cannot impose its way on the agreement just because it cannot pay.

As a consequent, Prof Gatsi noted that “convincing the creditor is the way to go, but just setting your target and imposing that target on the creditor is as though you don’t want the creditors support, and you cannot do that the way you do it in the domestic debt exchange. When you do that in the external creditor community, you will fail”.

“So, I believe this is just the first step, we have seen creditors reacting negatively to that call. So, the government should be aware and look at what to put on the table next. But I believe the 40% is not in the interest of creditors that’s why they’re reacting…

“They have started reacting negatively, we saw what was happening – at least I think when the announcement came. So, the bonds start plummeting, that’s the signal they’re sending. So, I believe further negotiation is needed…”

Prof John Gatsi

Touching on whether Eurbond holders will succumb and accept the 30%-40% haircut propositon by government, Prof Gatsi revealed that the whole issue about debt exchange programme is based on the fact that the creditor must decide what should happen.

ADVERTISEMENT

He indicated that government needs to appeal to the conscience of the creditor community to accept its proposition.

“So, I believe it’s going to be a discussion and negotiation that will come to some agreement at a point. But the point is for an external creditor, especially to accept that I want to lose 40% of my principal and lose 5% of my interest. That creditor should be convinced that indeed, the government is not actually in position to pay the debt.

“Then, if the debt is not paid, which one is the best for the creditor? So, by that discussion, maybe a middle way will be found for an agreement.”

Prof John Gatsi

Reaching consensus with Eurobond holders

Furthermore, Prof Gatsi iterated that although government may have its target, such targets cannot be imposed on the creditor.

He noted that the intention of the government may also be to save the currency by ensuring that the amount of money it has to pay to the creditors is reduced to give some respite to the currency, however, those targets are not “legally binding and not the conclusion”.

Meanwhile Prof Gatsi emphasized that it’s too early for government to also talk about extension of IMF programme, because “we are barely thinking about the second tranche in the first year”.

He underscored that government should be focusing on how it will be able to achieve all the targets on the programme.

“When we get to the tail end and we see that we are not achieving some of the target and extension of the programme will help us achieve that, then we can talk about extension…”

Prof John Gatsi

Moreover, Prof Gatsi expressed the need for discussions on the importance of growth and how to bring back productivity. He revealed that in conducting debt sustainability analysis, one of the fiscal indicators is exports, which government must focus on.

“So, we will need to be working towards how we can expand our export base, how we can get into new destinations with our exports to be able to moderate the external fiscal vulnerabilities…”

Prof John Gatsi

READ ALSO: Mahama Requests Relief Assistance From Multilateral Partners For Flood Victims

Tags: economyEurobond holdersExternal creditorsFinance MinistryFiscal indicatorsGhana NewsIMF
Please login to join discussion
Previous Post

Over 900 PPP Members In Sunyani Defect To The NDC

Next Post

Ghanaian Music Market Can’t Be Compared To Nigeria – Kuami Eugene

Subscription Form

Related Posts

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs
Economy

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs

October 23, 2025
Government’s Bond Payments Drive Domestic Debt Surge — Now GH¢323.7bn and Counting
Economy

Government’s Bond Payments Drive Domestic Debt Surge — Now GH¢323.7bn and Counting

October 23, 2025
GSS Charges Gov’t to Protect ‘Stronger’ Women’s Role in Informal Trade
Economy

GSS Charges Gov’t to Protect ‘Stronger’ Women’s Role in Informal Trade

October 23, 2025
Support Informal Sector, Worth GHȻ 7.4B in 2024Q4 – GSS
Economy

Support Informal Sector, Worth GHȻ 7.4B in 2024Q4 – GSS

October 23, 2025
Professionals question IMF’s Impact on Ghana’s Economy
Economy

Professionals question IMF’s Impact on Ghana’s Economy

October 22, 2025
Ghana Beats Fiscal Target as Budget Deficit Shrinks to GH¢19.7bn
Economy

Ghana Beats Fiscal Target as Budget Deficit Shrinks to GH¢19.7bn

October 22, 2025
Putin’s Failure To Attend Istanbul Talks Decried
Europe

Putin Criticises US Sanctions On Russian Oil Giants

by Comfort AmpomaaOctober 23, 2025
Swelling Trade Cost, Africa Loses US$5b Annually– AfCFTA
Vaultz Business

Swelling Trade Cost, Africa Loses US$5b Annually– AfCFTA

by Michael Teye-Bio NaduteyOctober 23, 2025
Brazil's President, Luiz Inacio Lula da Silva.
Around the Globe

Lula To Seek Historic Fourth Term In 2026

by Comfort AmpomaaOctober 23, 2025
MahamaCares Partners Health Professionals for Healthcare Delivery Improvement
General News

MahamaCares Partners Health Professionals for Healthcare Delivery Improvement

by Emmanuel Tibila BoasahOctober 23, 2025
Galamsey Threat Puts Ghana’s Water Security at Breaking Point
General News

Developer’s Encroachment Threatens Kpeve Water Production – GWL

by Silas Kafui AssemOctober 23, 2025
OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities
Banking

OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities

by M.COctober 23, 2025
Putin’s Failure To Attend Istanbul Talks Decried
Swelling Trade Cost, Africa Loses US$5b Annually– AfCFTA
Brazil's President, Luiz Inacio Lula da Silva.
MahamaCares Partners Health Professionals for Healthcare Delivery Improvement
Galamsey Threat Puts Ghana’s Water Security at Breaking Point
OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities

Recent News

Putin’s Failure To Attend Istanbul Talks Decried

Putin Criticises US Sanctions On Russian Oil Giants

October 23, 2025
Swelling Trade Cost, Africa Loses US$5b Annually– AfCFTA

Swelling Trade Cost, Africa Loses US$5b Annually– AfCFTA

October 23, 2025
Brazil's President, Luiz Inacio Lula da Silva.

Lula To Seek Historic Fourth Term In 2026

October 23, 2025
MahamaCares Partners Health Professionals for Healthcare Delivery Improvement

MahamaCares Partners Health Professionals for Healthcare Delivery Improvement

October 23, 2025
Galamsey Threat Puts Ghana’s Water Security at Breaking Point

Developer’s Encroachment Threatens Kpeve Water Production – GWL

October 23, 2025
OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities

OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities

October 23, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address