$3bn IMF bailout: Will gov’t have the commitment to implement what they’ve signed up? – Ricketts-Hagan


Member of Parliament for Cape Coast South Kweku George Ricketts-Hagan has questioned whether the Government of Ghana would have the will and commitment to implement the terms and conditions of the just approved $ 3 billion bailout by the International Monetary Fund (IMF).

In his view, the government did not have the commitment to go to the Fund for support hence wonders whether they will have that commitment to implement the terms.

“Government desperately need the IMF but they don’t deserve it. The commitment to go to the IMF wasn’t there,” the former Deputy Finance Minister said on the Key Points on TV3 Saturday, May 20

He added “The question is whether the government will find the commitment, determination and will to implement what they have signed up for?”

The $ 600 million first tranche has hit the accounts of the Bank of Ghana (BoG) on Friday, May 19.

Speaking at the IMF-Ghana joint press conference held in Washington  on Thursday, May 18, Governor of the Bank of Ghana Dr Ernest Addison joined virtually from Accra said “Just for your information we have had swift advisory today, [Thursday] to receive the money by tomorrow [Friday], 600million US Dollar”

Finance Minister Ken Ofori-Atta for his part said the second tranche is expected to be received in the next 6 months.

“There is a 600million Dollars release, I am sure we can get it by tomorrow, and in the next 6 months it is going to be another 600million dollars and then we have about five different tranches in the periods forward to get to the 3bn,” he said.

The IMF Mission Chief for Ghana Stéphane Roudet indicated that the $3 billion bailout will result in reforms in the energy and cocoa sectors.

Also, he said the programme will result in reforms to encourage private sector investments and also build international reserves.

“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference.

“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.

For his part, Finance Minister Ken Ofori-Atta thanked the Fund for the support.

He said “We are already seeing relative stability in the currency and inflation and revitalizing our economy. Government with support from the IMF and collective effort with Ghanaians will work through our current challenges and emerge stronger.”

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.


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