Going to IMF shows Ghana is fixing its mess – Economist

Ghana seeks IMF bailout

Decision to go to IMF will boost investor confidence, Theo Acheampong

Negotiations with IMF officials will reveal what Ghana qualifies for under the programme

An economist and political analyst, Dr Theo Acheampong, posits that visiting the International Monetary Fund for a bailout will restore confidence in Ghana’s economy.

He said the decision by the government to seek a bailout from the IMF shows that the country is on its way to “fix the mess that we find ourselves in”.

Speaking on Newsfile on JoyNews, he added that “looking at the sovereign market prior to the announcement of the IMF programme, Ghana was trading above distress levels, but since the announcement of the IMF programme, there has been a bit of correction in terms of the spreads where it comes down to a couple basis points."

He furthered that investor confidence in the country will start building up again to help the country’s ailing economy.

“That then signals that going to the market, and the sort of investors that we are dealing with would have some sort of confidence in the Ghanaian economy and reverse the portfolio of outlookers,” he said.

The government of Ghana on Friday, July 1, 2022, announced the decision to seek a bailout from the IMF to salvage its dying economy and help address the current economic challenges facing the country.

Officials from the IMF have since arrived in the country to begin engagements with the Finance Ministry concerning the country’s decision to seek its help.

JEA/FNOQ