Franklin Cudjoe suffers haircut of over GHS100,000 on EDC investment

President of IMANI Centre for Policy and Education, Franklin Cudjoe has disclosed that he has suffered a haircut on his investment.

In the midst of the current economic crisis, Finance Minister Ken Ofori-Atta has this week announced Ghana’s Debt Exchange Programme to protect the investments of investors.

Today, Franklin Cudjoe has noted that his EDC investment has been given a haircut of over GHS100,000.

“I have been given a haircut of a little over 100,000 cedis in my EDC investment made over the years based on Marked to Market value,” the IMANI boss said.

Franklin Cudjoe added, “My fund manager adds a note rather painfully, that "Investors that choose to remain in the fund until Ghana's macroeconomic health and bond prices improve are not likely to realize these losses." Folks, based on IMANI's analysis of government handling of finances from 2010 to 2022, leading to the publication of IMANI's Fiscal Recklessness Index, this means waiting for at least 8 years for governments not to be so reckless in pretending to manage the economy. And this will be hoping against hope.”

According to Franklin Cudjoe, until Ghana fixes the broken political system that rewards cheap sloganeering with limitless tax and borrowed funds to be splurged at will, the country is going nowhere.

Under the Debt Exchange Programme announced by the Finance Minister, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032, and 2037.

The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity whilst coupon payments will be semi-annual.