Professor of Applied Economics at Johns Hopkins University in the United States, Steve Hanke, has predicted that Ghana’s latest move to secure a programme with the International Monetary Fund will fail to deliver it to the ‘promised land’.
In a Twitter post, Prof. Hanke observed that the eventual outcome of the programme will be the same as Ghana's previous engagements with the Bretton Woods institution.
His comment comes on the back of a Bloomberg report which details that Ghana has asked for $3 billion over a three year period from the IMF.
“#Ghana passes the begging bowl to the IMF yet again. This time, it is asking for $3bn. SPOILER ALERT: Just like Ghana’s past 17 IMF programs, a new one will NOT deliver Ghana to the promised land. Today, I measure inflation in Ghana at a punishing 61%/yr,” Prof. Hanke tweeted.
Ghana revises IMF funding target, asks for $3 billion over three years - Bloomberg
The government will be looking at receiving an amount of $3 billion over three years from the IMF once an agreement on a programme is reached, the Bloomberg new portal has reported.
The portal reported on its website that the new amount requested as a loan was double the government’s initial target of $1.5 billion.
“Ghana’s government is in talks over a loan of about $3 billion from the International Monetary Fund, according to two people familiar with the matter.
“The amount is double what the West African nation was considering a month ago as it tries to shore up its finances and win back access to global markets. The funding would be provided over three years, the people said, asking not to be identified because the talks are still in progress and public announcements have not been made. Calls to a finance ministry spokeswoman didn’t connect,” Bloomberg added.
It will be recalled that the government on July 1 made a U-turn on its strong position of not seeking support from IMF amid an economic downturn.
A team from the IMF arrived in the country on July 6 and engaged Ghanaian authorities for a programme aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.
Government has continuously maintained that it will negotiate a good deal with IMF.
On Friday, August 5, American credit rating agency, Standard and Poor's (S&P) Global Ratings pushed Ghana's debt further into speculative territory, lowering its foreign and local currency sovereign ratings to CCC+/C from B-/B.
According to a report by marketwatch.com, S&P said its outlook for the country remains negative, "reflecting Ghana's limited commercial financing options, and constrained external and fiscal buffers."
President Nana Akufo-Addo and Professor Steve Hanke