The Government’s decision to go for International Monetary Fund (IMF) bailout is in the right direction, Mr Isaac Appiah Amankwaa, a lecturer, Faculty of Economics and Business Administration, Catholic University College of Ghana (CUCG) has said.
A delegation from the International Monetary Fund is expected to begin in-person meetings with the Ghana Government’s representatives over an economic support plan in Accra on Thursday July 6.
But the Ministry of Finance and Economic Planning has assurance of the Government’s commitment to successfully negotiate with the IMF.
Speaking in an interview with the Ghana News Agency (GNA) on Tuesday in Sunyani, Mr Amankwaa explained that the current state of the nation’s economy had put the Government in a “tight situation” and left with no other alternative than to seek the bailout for economic stabilization.
That notwithstanding, he said the Government ought to reduce import bills on fuel and revive the Komenda Sugar Factory to minimize importation of sugar and invest more into the One District One Factory (1D1F) programme for job creation and poverty reduction.
All these interventions, Mr Amankwaa said, remained necessary because “IMF provides short- and medium-term policies to reduce inflation thereby pushing and improving the economic growth rate.”
He also highlighted the need for the government to push vigorous industrialization, reduce import duties and tackle the nation’s exchange rate problems, block loopholes and wastages in revenue mobilisation and pass the Tax Exemption Bill.
“The size and strength of the government and entitlement for the Article 71 office holders is too much and the payment of ex-gratia is unnecessary”, Mr Amankwaa added, and asked the government to remain disciplined in its finances.
In a related interview, Madam Justina Owusu-Banahene, the Bono Regional Minister has entreated Ghanaians to remain calm, as the country begins negotiations with the IMF for a bailout.
She said despite perceived and unfavourable conditionalities, the country stood to benefit a lot from the IMF bailout, saying the economic situation now had compelled the government to negotiate for the bailout.
Mad. Owusu-Banahene told the GNA that the country was going through serious financial stress and needed the IMF as a “savior” saying the “government has competent hands who know the best for the nation in times like these.”
