Tell Ghanaians the outcome of IMF data assessment mission – Prof. Gatsi to gov’t

Tell Ghanaians the outcome of IMF data assessment mission – Prof. Gatsi to gov’t
Tell Ghanaians the outcome of IMF data assessment mission – Prof. Gatsi to gov’t

The Dean of Student of the Business School at the University of Cape Coast, Prof. John Gatsi wants the government to stop giving unconvincing reasons for its decision to engage the International Monetary Fund (IMF) for support.

Instead, he wants the Akufo-Addo government to open up to the Ghanaians about the outcome of the data assessment mission by the team from the IMF.

“We actually don’t need what led us to IMF after the fact-finding visit by the IMF rather what did the IMF and the government of Ghana settled on at the exit meeting to describe the economy.

“What Ghanaians want to know is the homegrown policy proposal the government presented to the IMF. The IMF has clearly provided summary of observations and what to do next. We have not heard anything from government. In attempt to brief the people,” Prof. John Gatsi has said in a statement.

On Thursday, Vice President Dr. Mahamudu Bawumia partly blamed the erstwhile Mahama administration for the current economic challenges facing the country.

While admitting that Covid alone is not the cause of the problems, he said the ruling NPP government is seeking support from the International Monetary Fund (IMF) because the economy has been hit with a quadruple whammy.

“With the challenges on accessing the capital market, balance of payment support was needed to bridge this financing gap, stabilize the economy and create the space to implement structural reforms and restore debt sustainability and this is really the reason why Ghana had to go to the IMF.

“I should again note that Ghana has been hit with a quadruple whammy. The energy sector excess capacity payments. Banking sector cleanup, Covid-19, and the Russia-Ukraine war. If you take out this quadruple whammy Ghana will not be going to the IMF,” H.E Dr. Mahamudu Bawumia said.

Not impressed by these arguments, Prof. John Gatsi says it is clear Ghanaians are also not convinced by the reasons provided by the Vice President.

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Find more in the statement below:

Open up to Ghanaians about the outcome of the IMF data assessment mission and not unconvincing reasons for engaging IMF —Prof. John Gatsi

Reasons outlined by government as to why Ghana is looking up to the IMF are not convincing and are not the most important information Ghanaians need.

Ghanaians are not convinced the approach adopted by government and Bank of Ghana in dealing with the cleanup exercise was most appropriate. It is an intentional policy choice with dangerous impact on institutions, entrepreneurs and financial sector investment. The cost of the banking and financial sector cleanup is a policy choice against other sound, principle based alternatives.

We already know that Covid-19 pandemic in terms of expenditure and borrowing is actually a self-financing project and its greatest impact was in 2020 as it disrupted economic activities and growth. The energy sector debt financing model was changed by the government against what was inherited. Therefore, insisting on the above reasons for going to IMF will remain unconvincing thesis.

We actually don’t need what led us to IMF after the fact finding visit by the IMF rather what did the IMF and the government of Ghana settled on at the exit meeting to describe the economy to be in deep challenge in need of credibility for monetary policy, fiscal difficulties and vulnerability of Ghanaians?

What led to the credit rating downgrade? What is the new level of debt and debt to GDP level after reassessment of the public debts. What do we do to the fragile cocoa sector as a result of over GHS 10billion commitments , almost GHS 3.5billiion cocoa bills and lower production.

What Ghanaians want to know is the home grown policy proposal the government presented to the IMF. The IMF has clearly provided summary of observations and what to do next. We have not heard anything from government. In attempt to brief the people

Any reason provided for which Ghana is engaging the IMF without the inclusion of fiscal mismanagement, self inflicted fiscal dominance with its negative effect on the Central bank remains unconvincing

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