Finance Minister, Seth Terkper says the decision to turn to the International Monetary Fund is to save the cedi from further depreciation and also to advance the confidence of investors in the economy.
Government over the weekend announced the decision to opt for an IMF bailout in order to save the ailing economy from sinking further.
Presidential advisor on the economy, Dr Nii Moi Thompson hinted on Joy FM last week that although going back to the IMF was being considered, that will hinge on technical expertise but not necessarily going for financial package.
The decision to turn back to the IMF and other developmental partners was one of the major resolutions reached after President John Mahama met the Presidential Advisory Committee on the Economy at Peduase, Friday.
Speaking in an interview, Mr. Terkper further explained: “The ultimate objective is to stabilize the cedi in order that domestic prices…will be brought under control and therefore that is a consumer welfare of what is to be done”.
“When you stabilize the cedi you are also looking at a situation where investors do see a more predictable economy as they bring their investments into the economy. So there are benefits in this for both consumers and the business community”.
“This will be the first programme that we start discussion with the Fund that takes account of our transition…into an economy that has become a middle income country,” the Minister noted.
Meanwhile, President Mahama has also directed that urgent measures be taken to expedite the coming on stream of domestic gas supplies to provide cheaper fuel for power generation.
This will among others, improve the energy situation in the country as well as minimise the foreign exchange burden of crude oil imports.