Audio By Carbonatix
Ghanaian economist Professor Stephen Adei has criticised former President John Mahama's announcement of his intention to renegotiate the International Monetary Fund (IMF) deal if he's re-elected.
Prof Adei expressed concerns that Mr Mahama's comments could undermine ongoing negotiations with external creditors.
In an interview with Reuters, Mr Mahama stated that he intends to renegotiate the terms of the IMF bailout and increase local ownership of future oil and mining projects if he wins the December election.
- Read also: Explainer: Can an IMF deal be renegotiated?
However, Prof Adei accused Mr Mahama of pandering to public sentiments without considering the detrimental effects such a decision could have on current agreements with external creditors and the broader economic implications for the country.
"During an election year, politicians will say anything they think will make people like them… what he is saying is of little relevance because the IMF – the money they are giving us is very little. The essence of the IMF is that its position influences what the bilateral and multilateral creditors will do.
"So if there is any negotiation, it is not with the IMF. It is going to the creditors – both bilateral and multilateral – to negotiate the money," Prof Adei explained.
He noted that the IMF is not responsible for the hardship in Ghana, stating, "The hardship was caused by the fact that we have literally become a bankrupt country."
According to Prof Adei, Mr Mahama should focus on addressing the existing debt crisis rather than renegotiating with the IMF.
"When he becomes president, he will inherit the debt crisis, and the solution is not renegotiating with the IMF," he added.
The former Board Chairman of the Ghana Revenue Authority (GRA) also cautioned Mr Mahama against jeopardising the deal, emphasising that if it is not signed, the country's problems would be compounded.
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