- June 21, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
Chief Operations Officer at the Dalex Finance, Mr Joe Jackson has said that Ghana needs to go back to the International Monetary Fund (IMF).
In his view, the country will not be able to resolve its fiscal challenges without going to the Bretton Wood institution for support.
Speaking in interview with TV3’s Komla Adom on the mid day news on Tuesday June 21, Mr Jackson said “I think the IMF is the most option to check the excesses we face.
“Our budget deficit is huge, there is no fiscal space, we need the IMF to support us so that the foreign markets and the flow of funds will be maintained. I honestly don’t see how we will get round this without going to the IMF.
Another economist, Dr Adu Sarkodie also said recently that Ghana is likely to return to the IMF for support.
He says if this finally happens, it will affect some of government’s programmes such as the free Senior High School, Nation Builders Corps (NABCO) and others.
“We are likely to go back to the IMF. I don’t like it when we go there because of the conditionality. They may ask us to cancel Free SHS, NABCO, and all that but this is the time we need all these social interventions,” Dr Adu Sarkodie told 3FM on Thursday June 16.
The Finance Minister, Ken Ofori-Atta, recently insisted that Ghana would not go back to the IMF for support.
In his view, the government has put in place measures including salary cuts and others, and also programmes to deal with the fundamental issues affecting the economy.
Mr Ofori-Atta said these when he was asked by expatriate journalist whether Ghana would consider going back to the IMF, at a press conference in Accra on Thursday May 12.
He said while answering the question that “All the white folks are just interested in us coming in the IMF programme. I always wonder why.”
“We are members of the fund; there are two major points of interventions that we have from the fund. One being the advise that we get because of the phenomenal expertise that the fund has and then secondly, these programme interventions which bring us some resources.
“I think, if you see from the budget that we constructed for 2022 and the subsequent announcement that we have done, clearly, the issue of Ghana having the capacity to think through the consolidation exercise exist. Also discipline itself with regards to the 20 per cent, etc, that we have shown clearly.”
He further indicated that “We have committed to not going back to the fund because in terms of the interventions and policy we are right there, the fund knows that we are completely in the right direction. The issue is, validating the programmes that we have put in place and then, in my view, supporting us to find alternative ways of financing or re-financing our debt, reprofiling it.”