IMF May Not Accept Ghana’s Proposal – Ato Forson Explains Why
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Hon. Cassel A to Forson, an NDC Member of Parliament has revealed that Ghana is late in going for the IMF program.
According to him, situations are worse now, and Ghana may not be granted the loan.
This was contained in a write up sighted by Radio1News
This IMF Decision should have been taken 12 months ago for the following reasons:
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- Our public debt was scary 12 months ago but is it NOW in a precarious state and we may default.
- Inflation was not in such a terrible state 12 months ago
- Monetary policy rate was NOT this high 12 months ago.
- Ghana’s credit rating was NOT in the junk range then.
- The balance of payment DEFICIT in Q1 2021 was about $430m, 12 months later it is about $1bn.
- Investor confidence was wavering 12 months ago but now it is at its lowest.
- Our fiscal framework though terrible 12 months ago, is NOW in a horrible state.
Remember, the IMF DOES NOT lend to countries with UNSUSTAINABLE DEBT, that alone means a lot for Ghana.
The key difference between the 2015 IMF programme and the likely 2022 IMF programme will be our dangerous and unsustainable public debt situation, which was accumulated due to the NPP’s reckless borrowing for consumption!
Fiscal consolidation alone won’t work for Ghana, we need more!
Expect a long and possibly protracted IMF negotiations, it will take months, maybe more than a year!
Get ready for turbulence but remember this is self-inflicted.
Cassiel Ato Forson is a Ghanaian politician and member of the Seventh Parliament of the Fourth Republic of Ghana representing the Ajumako-Enyan-Esiam Constituency in the Central Region on the ticket of the National Democratic Congress (NDC).
In 2013 he served as the deputy minister for Finance.
