Ken Ofori-Atta, the Finance Minister, is adamant that the government will not seek financial aid from the International Monetary Fund (IMF) to help the economy thrive.
The minister stated the existing government has taken the required steps in terms of fiscal policies to ensure it can create enough money domestically to stabilise the economy at a press conference conducted by the Information Ministry on Thursday, May 12.
“Then we get to the issue of our debt level for the financing. The question then becomes whether the Fund (IMF) would have the type of resources that we will require to really inoculate a program for the debt. That is a question that is hanging but we have committed to not going back to the fund because in terms of intervention, with policy, we are right there and the fund knows that we are completely in the right direction.”
Mr Ofori-Atta stated that Ghana will stick to its fiscal consolidation plans, which include a 20% drop in spending.
“If you see the budget we constructed for 2022 and the subsequent announcements we have done, clearly, the issue of Ghana having the capacity to think through the consolidation exercises and also discipline itself with regards to the 20-30% cut that we have shown, clearly (gives) a direction that even the Fund will be hesitant to push any further.”
In the meanwhile, the minister has stated that while the government would not seek financial assistance, it will seek advise from the IMF on how to settle its debt.
“So the issue is validating the Programme that we are putting in place and in my view, supporting us to find alternative ways of re-profiling our debt without needing to be with the Fund.”
According to the Finance Ministry, the IMF provides assistance to Ghana in two ways: expert advice and programme actions that result in resources.
Following the implementation of the Electronic Transaction Levy, there was discussion of obtaining financial help from the IMF.
The opposition to the levy encouraged the administration to focus on the IMF.
Former Attorney-General and Minister of Justice, Dr Obed Asamoah in an interview on JoyNews said;
“I wish we didn’t have to go to the IMF… but where we are now, I think we have to. They will lower our size in terms of expenditure.”
Despite the demands, the government stressed that it would not seek the IMF for a bailout.
Source: The Independent Ghana