IMF bailout: Ghana has no deal yet; it’s all hype – Prof Gyampo

Professor Ransford Gyampo, a political scientist at the University of Ghana, has stated that attempts to portray the staff level agreement reached with the International Monetary Fund (IMF) as Ghana having reached a deal with the IMF while Ghana seeks a bailout from the IMF are propaganda because Ghana has not yet reached a deal.

Prof. Gyampo emphasised on social media that Ghana has not received a deal from the IMF and that the lie that a deal has been reached would be exposed by the country’s facts. He also said that organised labor’s opposition to the Government’s debt restructuring programme, which the IMF required in order to reach an agreement, could hinder the Government’s ability to reach an agreement as quickly as possible.

He maintained that good administration must include sincerity and candour.

The administration has announced a debt restructuring programme that is so archaic at birth and would face intense opposition in order to support the goal of restoring public debt sustainability.

Before the proposed Fund-supported programme may be submitted to the IMF Executive Board for approval, sufficient assurances and advancement on the divisive debt restructuring programme are required.

Even though Ghana is far from cruising, our people continue to spread the myth that we have a deal. Yet despite the fact that propaganda has frequently been exposed by facts, we continue to spread lies. E-levy was a disaster despite being promoted as the solution to all of our issues.

We are back to selling a $3 billion programme that hasn’t been fully signed and may be challenging to implement as a panacea (due to the opposition labour will mount to the programme in order to protect its interest).

Without candour and sincerity, there cannot be meaningful discussion about effective government, he said.

Following a meeting with Ghanaian authorities, the IMF team and Ghana came to an agreement at the staff level for a three billion dollar rescue.

“IMF staff and the Ghanaian authorities have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion. The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery,” the IMF said.

The 3 billion, according to Finance Minister Ken Ofori-Atta, will aid the government in reducing inflation and stabilizing the Cedi.

Source: Ekow Coffie