Financial Analyst Peter Terkper has said the government’s decision to make the inclusion of individual bondholders in the domestic debt exchange program, a voluntary exercise is laudable.
He said the earlier stance of the government to force individual bondholders to be part of the domestic debt exchange program had implications for investor confidence in the banking sector and the economy in general.
” Government has to be commended highly for listening to the forum of the individual bondholders. I think in the beginning this crisis is a burden-sharing crisis moment, and in fact, the government could have decided not to listen and then agree to align with what the concerns were.
There’s going to be low trust in the banks should people realise they have lost their investments. And when trust is broken it is going to have serious consequences for the financial space.
And so it is very timely that the government has listened so that the confidence that is being eroded gradually will bring back that confidence, and once that confidence is back it will cause people to have a sound minds to invest, other than that people will have money but they will not invest it.”
Mr. Terkper called for a statutory national financial management policy bidding with successive governments to prevent mismanagement of the economy.
