He said though, the government had reached a staff-level engagement with the International Monetary Fund (IMF), it is important to adopt these measures to ensure that the financial sector is not weakened as a result of the government’s quest to secure a $3 billion from the Fund.

Speaking on Eyewitness News, Prof. Bokpin said “we cannot in the name of wanting to secure an IMF facility, systematically weaken the balance sheet of the financial sector or financial institutions.”

“People also want to choose the style of the haircut that they want to have and government must be open to that so let’s not force the haircut in addition to the style. Let us be open to the kind of restructuring that also preserve the balance sheet of the participating financial institutions.”

He was speaking at the back of the government’s debt restructuring initiative in preparation for the $3 billion IMF facility which progress has advanced with a staff-level engagement which is the crucial part of the negotiations reached on December 13.

He advised the Government to be strategic in order to rope in the bond holding institutions which none is yet to sign onto the programme to prevent the collapse of the engagement with the IMF.

Many unions and associations have kicked against the programme since its announcement saying it will worsen the living standards and pensions of members.