An economist and Head of Finance at the University of Ghana Business School, Professor Godfred Bokpin, has said it will take drastic measures by successive governments to ensure Ghana does not return to the International Monetary Fund (IMF) for a bailout, following President John Mahama’s assertions that the current bailout was the country’s last.
At the 10th quadrennial delegates’ congress of the Trade Union Congress (TUC) in Kumasi on Wednesday, 10 August, Mr Mahama referred to the current bailout as the “ultimate” in reaction to the TUC’s clamour for government to suspend the deal and resort to home-grown policies.
“I wish to reiterate my earlier statement that this is our ultimate IMF programme. This is the IMF programme to end all IMF programmes,” the president said.
However, in Professor Bokpin’s view, the country may sooner than later return to the IMF, unless something drastic is done, especially with reference to fiscal discipline.
“…If we do the same things, we cannot expect different results. If we change our ways, we can get different results. So, now, my opinion is that it (IMF bailout) won’t be the last one; that is my considered opinion. That is not to say that the president is wrong…[but] we’ve been to the IMF more times than the average Ghanaian gives birth to a child. We have to do something extraordinary to assure ourselves that this will be the last time. That’s my opinion,” he stated.
Ghana signed up for the IMF programme in April 2015 after fiscal challenges triggered an over-expenditure of 12 per cent.
The country received an initial $144.8 million in April 2015 and a second tranche of $115 million in August. The government is expecting a third tranche of $116million, being part of the $918million credit facility.
Source: ClassFMonline
