Returning to the IMF could offer policy credibility for Ghana – Economist

Ghana’s economic situation in distress, Bloomberg report

Ghana’s public debt stock hit US341.8 billion in September 2021

A return to the IMF could be avoided, Economist, Dr Sarkodie

A senior lecturer at the University of Ghana Economics Department, Dr Adu Owusu Sarkodie has advised government to return to the International Monetary Fund for financial support.

Though he believes passing critical policy interventions such as the E-Levy, discount on benchmark values among others will help address the country’s debt situation, a return to the IMF could however be avoided.

Speaking on the Asaase Breakfast Show, Dr Adu Owusu Sarkodie explained that heading back to the IMF could somewhat offer the country some policy credibility.

“My final and most bitter option is to seek an International Monetary Fund programme. This is not something I want. I have never wanted an IMF programme for this country. In all my submissions, I haven’t been impressed with Ghana going to the IMF,” he stressed.

Dr Sarkodie continued, “…But any time we have gone to the IMF, there was the need for it. We mess up and we get ourselves into the situation where there is no way out except to seek an IMF programme. It is my third option and it is a bitter one.”

“We have to seek the IMF programme for policy credibility before they can lend you the money. It is a fact that if the investors do not trust you, the way out is to go to the IMF and seek policy credibility before they can lend you the money credibility,” he is quoted by Asaase News.

Meanwhile, a number of notable international organisations have predicted some economic distress for Ghana particularly this year.

Ratings agency, Fitch recently downgraded Ghana’s long-term foreign-currency issuer default rating (IDR) to B- from B with a negative outlook. Read Full Story