IMF confirms engagement with Ghana government for bailout
Looking forward to start initial discussions in coming weeks, IMF to Ghana
Trade lawyer, Dr Ken Ukaoha, has said Ghana will lose respect on the African continent if it runs to the International Monetary Fund (IMF) for a financial bailout amidst the economic woes of the country.
He blamed the citizenry for not putting government on its toes to spend within its stipulated budget to avert this current economic crisis.
Speaking in an exclusive interview with GhanaWeb on the sidelines of an ECOWAS-GIZ training for English-speaking West African countries, Dr Ukaoha said engaging the IMF for financial assistance will rather cause harm than good to the nation.
“Ghana is one of the countries that is respected in Africa and I just hope that what I am hearing is not correct and if by going by what we hear, it means there is a depreciation in value. That means the Ghanaian people are depreciating in value, that means the Ghanaian people are not holding their government accountable, that means that the people will be tormented because you cannot shave anybody's head in his absence. There is no way Ghana will go to the IMF without getting some fingers burnt,” he told GhanaWeb in the exclusive interview.
"No country has done that and come out freely. I think that the first thing to do is to know whether the government of Ghana has washed their eyes very clearly and know that this is what is supposed to be done. There should be a national debate and I'm not sure this has happened. It is impracticable in this 21st century for a government to take loans again," he added.
The trade lawyer further stated that "We should remember that he who goes a-borowing will go a-sorrowing and that component has been forgotten. Therefore, before you borrow, what are you borrowing for, what do you want to do with that borrowing, what will be the returns of the investment...all of these things ought to be marshalled out clearly for an endorsement and I warn, any parliament in Africa that comes out to endorse go and borrow because somethings will come into their pockets, woe unto such."
President Nana Addo Dankwa Akufo-Addo on Friday, July 1, 2022, instructed the Finance Minister, Ken Ofori-Atta to commence official engagements with the International Monetary Fund.
According to a press statement sighted by GhanaWeb, the IMF support will provide a “balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the COVID-19 pandemic, and recently, the Russia-Ukraine crisis.”
The International Monetary Fund (IMF) on the same day confirmed that the Government of Ghana had run to them for financial bailout to stabilize the wobbling economy.
Announcing this on microblogging site - Twitter - on Friday, July 1, 2022, the IMF said it was poised to assist Ghana to have a homegrown economic programme.
"We confirm Ghana officials have been in touch to request IMF support for a homegrown economic program. The Fund stands ready to assist Ghana & looks forward to starting initial discussions in the coming weeks," the IMF stated.
Meanwhile, IMF negotiations with Ghana will begin on Friday, July 6, 2022.
ESA/FNOQ
