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President Akufo-Addo has asked the International Monetary Fund (IMF) to support economic programmes put together by the government.
This was done through a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva.
A statement issued by the Information Ministry on Friday, July 1, added that government has already decided to engage the IMF for support after a cabinet meeting held on June 30, 2022.
“The engagement with the IMF will seek to provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the Covid-19 pandemic and, recently, the Russia-Ukraine crises,” the statement added.
This development comes days after a leading member of the New Patriotic Party (NPP), Gabby Otchere-Darko, said he was not against the government seeking economic support from the International Monetary Fund (IMF).
According to him, any move or plan by the government to go to the IMF for a programme would be a matter of principle.
“Am I against an IMF programme in principle? No. I am not for an IMF programme that throws peanuts at us but imposes conditions that will end up hurting the poor, jobs and businesses more.
“Covid-19 and War in Ukraine are not of Africa’s doing, but more to our doom. A programme that pretends it is all our doing is doomed to fail,” he tweeted on Monday, June 27.
Prior to Gabby Otchere-Darko's tweet, Deputy Finance John Kumah had hinted that government may consider going to the International Monetary Fund (IMF) for a programme if the current home grown programme fails to bring the needed economic stability and restore investor confidence.
He indicated that an IMF programme will be pursued if needed.
For weeks, government has been criticised for failing to take the bold step of subscribing to a Fund programme to address the imbalances within the economy.
But defending their stance, Mr. Kumah said all options are on the table.
“If it [bringing the economy back to life] becomes impossible, then it is the only alternative to salvage our economy. But where we are now, we think we are in the position to salvage the economy or to try the homegrown policy we are adopting."
“If our programmes fail us and we are not able to get the confidence and the results in the fiscal space discipline, which we have to impose on ourselves, then we don’t have a choice”, the Deputy Finance Minister stressed while interacting with George Wiafe on PM Express on JoyNews.
Mahama's call for IMF bailout
On his part, former President John Mahama has called on government to urgently seek support from the IMF.
Speaking at the launch of the Think Progress Ghana think tank on Thursday, the former President urged government to seek support from the International Monetary Fund (IMF) to enhance the country’s economic fortunes.
“Due to the nature and depth of our economic problems, this government virtually has no other sustainable option.
“That is one of the things this government lacks. They don’t have fiscal discipline and that is why they are even afraid to go into an IMF programme,” the former President remarked.
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