A professor of finance and economics at the University of Ghana, Prof Godfred Bokpin, says it will be bad for the economy if the government decides to discontinue the current International Monetary Fund (IMF) programme.
President John Dramani Mahama has reiterated that his administration has no immediate plans to extend Ghana’s ongoing $3 billion Extended Credit Facility agreement with the IMF.
Speaking in an interview with Bloomberg TV at the Munich Security Conference, he stressed that his government remains committed to executing the existing programme without seeking an extension.
Addressing the possibility of future modifications, President Mahama acknowledged that an extension could be considered if necessary but insisted that the current focus was on implementing the agreed measures.
Speaking on Joy FM’s Super Morning Show during a discussion on the economy, Prof Godfred Bopkin said, “To think about it that we are exiting the programme in May 2026 conveys considerable risk to the market,” he noted
Prof Bopkin highlighted that the original financial programme, which aimed to restore economic balance, was designed with a follow-up extension or successor plan in mind. However, given the changing circumstances, he acknowledged that the nation now finds itself needing to adjust the course.
“What that will mean is that we have to then start another programme. If you look at the original programme, the programme was designed with an extension or immediate or a successor right after,” he explained
Prof Bopkin further estimated that it could take between three and four years before the country can access the international capital markets again. This delay, he noted, is a necessary period of rebuilding and stabilizing the economy.
“Remember that we are not able to go to the international capital market per the original programme until 2027,” he added
The government had previously restructured its debt to avoid default, but the lengthy and complex process of recovery means that the nation will need time to rebuild its financial standing.
"The World Bank was advising us…that’s just consistent with the period," Prof Bopkin added.
"Once you restructure your debt with the manner that ours took, we are looking at over 3-4 years before the market will receive you favourably," he concluded
Latest Stories
-
Abdul-Rasheed Saminu sets new National Record in the men’s 100m, books qualification for Tokyo World Championships
2 hours -
Supreme Court allows Trump to revoke legal status for 500,000 migrants
2 hours -
Eugene Boadi: Bryan Acheampong’s impact on entertainment sector
2 hours -
Faizan Zaki, 13, crowned US National Spelling Bee champion
2 hours -
US to double tariffs on steel and aluminium imports to 50%, Trump says
2 hours -
Wontumi denied access to family – lawyer confirms amidst detention
3 hours -
Meet the Brazilian sensation Fonseca hoping to shock Draper
3 hours -
Women ‘worthy’ of French Open night sessions
3 hours -
Alcaraz made to suffer in four-set win over Dzumhur
3 hours -
Minority Caucus probe into TV doctor Ann Sansa Daly’s credentials
3 hours -
In Oval Office farewell, Trump says Elon Musk is ‘not really leaving’
4 hours -
Suspect in South African student’s murder killed in police shootout
4 hours -
Ghana hits milestone in local vaccine production – National Vaccine Institute CEO
4 hours -
I’m grateful to Bryan Acheampong, he filed docs exceeding GH₵50m bail – Wontumi’s Lawyer
4 hours -
Wontumi files motion to review his bail conditions
5 hours