The Minority in Parliament has asked the government President Akufo-Addo to take full responsibility for ”the reckless management” of the economy that has led Ghana to the International Monetary Fund (IMF).
At a press conference held on Wednesday, July 6, 2022, the Minority Leader stated that there is no explanation from the government that will justify our decision to go to the IMF.
“President Nana Addo Dankwa and Dr. Mahamudu Bawumia should take responsibility for incompetently managing the economy to suffocate debt levels which have necessitated the retreat for us to request an agreement with the International Monetary Fund for the restructuring of our debt.”
“As they take responsibility, they should also take responsibility for their reckless and irresponsible borrowing and their unjustified and profligate expenditure, which has led us to this journey.”
Meanwhile, the government has outlined fro going back to the IMF.
The Finance Ministry, in a statement, explained that
Ghana is seeking IMF support for three (3) main reasons:
i. Addressing policy challenges following the Covid-19 Pandemic and the Russian and Ukraine War. The confluence of shocks from the Covid-19 pandemic and the Russian-Ukraine War have complicated the conduct of public policy globally. They have resulted in rising debt and erosion of buffers, worsening financing conditions, high inflation, and exchange rate and BOP pressures especially for Emerging Markets and Frontier Economies. As is the case in key EMs and FMs, Ghana is seeking IMF support to back its Enhanced Domestic Programme which will seek to restore stability, help to contain the rising debt, and address the emerging BOP needs;
ii. Balance of payments support: Secondly, for concessional/cheaper financing to shore up international reserves, stabilize the cedi, continue smooth payments for imports (petroleum products, pharmaceuticals, medical equipment, among others) and restore conditions for strong economic growth (including support for government flagship programmes), while correcting underlying problems; and
iii. Catalytic effect: Providing catalytic effect of accessing additional financing from third parties (friendly sovereigns/commercial creditors), including resuming ICM market access sooner than later, facilitating credit rating upgrades.
By: Rainbowradioonline.com/Ghana
