Ranking member of Parliament’s finance committee, Cassiel Ato Forson, says government’s decision to seek International Monetary Fund (IMF) bailout is belated.
“I saw it coming long ago. I know the government intended to evade what is obvious but the reality is clear that they had no other choice than to do an IMF programme.”
“Overall, I think it’s refreshing but the simplest thing is to authorise an IMF programme; the most difficult one is getting a programme. So, I only use them well that they’ve initiated the process but it doesn’t end there.”
He made the point in a reaction to government’s announcement to seek support from the Bretton Woods institution.
Ato Forson further noted the country would have to brace up for months of negotiation before it can settle on a programme with the IMF.
“We are going to have some months of negotiation and I pray that the negotiation will be done in the interest of the country and it’s going to support the growth of the country going forward…”
“Unfortunately, as a result of the fact that the government decided to delay in taking such an important decision. It has cost the nation and it will cost us even more going forward,” he added.
Background
Ghana is seeking the support of the International Monetary Fund (IMF) to help address the country’s economic woes.
A Press Statement issued by the information Ministry said: “The President of the Republic, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister Ken Ofori-Atta to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic program put together by the Government of Ghana.”
This follows a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund.
Meanwhile, the decision has the full backing of Cabinet following a meeting held on June 30th, 2022.
Ghana’s economy is in bad shape with fiscal slippages, weakened forex reserves, inflation and exchange rate getting worse by the day.
Fuel and food prices are hitting records high, while the local currency has lost over 30 percent of its value since the turn of 2022.
The country’s last programme, an Extended Credit Facility with the Bretton Woods institution, ended on April 2, 2019.
The programme resulted in significant macroeconomic gains with rising growth, but four years down the line, the economy is gasping for breath.
Source: Ghana/Kasapafmonline.com/102.5 Fm
