An Economist at the University of Ghana, Dr Patrick Asuming has indicated that the government is squandering the social trust that the people have in it by failing to honour its obligations.
He wants the government to fulfill the assurances that it has given to the people in order to stop the social trust from fading out completely.
His comments follow the threats by the Individual bondholders to picket at the Finance Ministry today Monday, July 11 to demand the payment of outstanding principals and coupons after they accused the government of failing to honor the agreed payment plan outlined in the Memorandum of Understanding (MoU) signed with the Coalition of Individual Bondholders Groups (CIBG).
Even though the planned picketing has been suspended following the announcement by the Finance Ministry at 11:30 PM Monday that the arrears on coupons and principals have been paid, Dr Assuming wants the government to have a second look at its strategies for honouring commitments.
“The government really needs to have a [second thought] about its strategy,” he told Paa Kwasi Asare on the Business Focus on TV3 Monday, July 10.
He added “The government is really destroying social capital and social trust that is important to implement the IMF programme.”
“The government will need to have discussions with Ghanaians and make a commitment and people will expect that for a short term, they are going to endure this and some relief will come.
“So if you start on this note where the government does not meet its obligations it creates problems,” he explained.
Regarding the outstanding arrears on coupons and principals of individual bondholders, the Ministry of Finance announced that it has settled all of them up until 19th June.
The Ministry of Finance in a statement issued on Monday, July 10 said “The Ministry of Finance takes this opportunity to thank all bondholders for their continuous support during this period of tight liquidity.
“Government is confident that in working with all stakeholders, we shall restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic”, the statement added.
