Prez Promise To End IMF Program Will Boost The Economy
President Nana Addo Dankwa Akufo-Addo has hinted that the government has increased their efforts to make sure sustainable economic growth to make the country independent from the influence of the International Monetary Fund (IMF).
The President added that, his government has reduced the total debt of the country to Gross Domestic Product ratio and has paid almost half of arrears inherited.
In his State of the Nation Address before Parliament, President Akufo-Addo stated that the government have increased our international reserves, maintained relative exchange rate stability.
“The relatively good macroeconomic performance in 2017 will strongly support our successful completion of the IMF programme.
“We are determined to put in place measures to make sure reversibility, and sustain macroeconomic stability, so that we will have no reason to seek again the assistance of that powerful global body,” President Akufo-Addo said.
He was optimistic that the economy will see much improvement this year, arguing that, his government has risen up to expectations.
“We have increased our international reserves, maintained relative exchange rate stability, reduced the debt to GDP ratio and the rate of debt accumulation, we have paid almost half of arrears inherited, and, crucially, we are current on obligations to statutory funds,” he explained.
The IMF, in April 2015, approved a three-year arrangement under the Extended Credit Facility (ECF) for Ghana in an amount equal to US$918 million in support of the authorities’ medium-term economic reform program.
The program was aimed at restoring debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.
At the conclusion of the Executive Board’s discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair stated that the main goals of the program are to meet a sizeable and front loaded fiscal adjustment while protecting priority spending, strengthen monetary policy by eliminating fiscal dominance, rebuild external buffers, and safeguard financial sector stability.
However, most economic analysts have described the program as a bitter pill for the country to swallow since it has crippled some sectors of the economy.
According to the analysts, the country’s high level of unemployment could be linked to her participation in the IMF program.
The bailout, however, was considered necessary for the restoration of investor confidence in a struggling economy beset by hindered electricity black-outs.
Though the IMF bailout will offer Ghana with loans worth about $940m in instalments, to fix its economy, concerns have been raised about the conditions attached to it.