IMF programme will restore macroeconomic stability, Report
We're not in normal times, Finance Minister
Finance Minister, Ken Ofori-Atta, has justified why the government run to the International Monetary Fund (IMF) for a financial bailout.
According to him, the outbreak of coronavirus, and the ongoing Russia-Ukraine war, among other global challenges forced the government to go to the IMF for help.
Ken Ofori-Atta noted that though the government put in measures to boost and stabilize the local economy for a Ghana beyond Aid, the world is not in normal times.
Appearing before parliament to present the mid-year budget statement on Monday, July 25, the Finance Minister said, “Yes, I know this Government assured the nation of a Ghana beyond Aid and our plans and programmes for economic transformation have been designed to achieve just that, and indeed, I did say that Ghana would not embark on an IMF programme. We did not just say it. We also took measures towards the attainment of that objective including the passage of the Fiscal Responsibility Act and instituting a number of irreversibility measures, and also launching the Ghana CARES “ObaatanPa” programme for economic revitalisation and transformation."
“Unfortunately, unprecedented global developments over the past two years, especially in these last six months, have really and truly disrupted our efforts. Governments across the world have had to change course to tackle the current crisis. Governments that less than a year ago were busily talking about energy transition and green and cleaner fuels have gone back to firing their coal plants. Governments that are known for low taxes are now raising taxes to tackle growing deficits. These are not ordinary times; not for Ghana, not for Africa, and certainly not for the whole world,” he added.
Ghana's total public debt stock, as of June 2022 stood at US$ 54.4 billion.
This was contained in the latest report released by the central bank, Bank of Ghana.
Meanwhile, a team from the IMF, led by Carlo Sdralevich arrived in the country on July 5 to engage government officials for a possible bailout.
The IMF programme, according to government is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.
ESA/BOG
Finance Minister, Ken Ofori-Atta