An associate professor of finance at Andrews University in Michigan, USA, Professor Williams Peprah, has stated that Ghana will be put in a tight position by the International Monetary Fund to be financially disciplined.
According to him, receiving the fund’s support will not lead to a rapid change in the current fate of the economy.
Prof. Peprah is of the belief that the country may be constrained in its expenditure, since there may be strict supervision from the fund.
“IMF will strengthen their technical supervision on Ghana to be financially disciplined,” he added.
He also added that the Financing Assurance by Ghana’s Creditor Committee under the G20 Common Framework “is good news that Ghana will be receiving the needed IMF financial bailout to support the balance of payment challenges.”
The finance lecturer said, “What the bailout will do in the next six months is to ensure a stable exchange rate that will lead to stable prices, reduce inflation and boost investor confidence economic confidence by investors.”
The Minister of State in charge of Finance, Dr. Mohammed Amin Adam, has stated that the approval of Ghana’s request for a financial bailout from the International Monetary Fund will open doors for Ghana to re-enter the international capital market.
Ghana has currently been shut out of the international capital market due to its highly unsustainable debt levels.
The Minister noted that the disbursement of the IMF funds will boost investor confidence in the economy.
“We will go back to the market because we will leverage on the IMF deal to balance our financing needs. We have development partners supporting, but a chunk of our inflows will come from the market so with the IMF approval, we are very confident that investor confidence in Ghana will increase. The institutions upgrading us will look favourably to Ghana and then as a result of all these, we could return to market very soon,” he was quoted by citinewsroom.com.
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