Member of Parliament for Ajumako Enyan Essiam Constituency Cassiel Ato Forsen has outlines why decision for International Monetary Fund (IMF) bailout should have been taken by President Nana Addo Dankwa Akufo-Addo’s government 12 months ago.
He explained that, the IMF does not lend to countries with unsustainable debt, that alone means a lot for Ghana.
According to him, 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.
Adding to that, he said, 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.
Here are some major reasons the Lawmaker believes that, this IMF decision should have been taken 12 months ago for the following reasons:
1. Our public debt was scary 12 months ago but is it NOW in a precarious state and we may default.
2. Inflation was not in such a terrible state 12 months ago
3. Monetary policy rate was NOT this high 12 months ago.
4. Ghana’s credit rating was NOT in the junk range then.
5. The balance of payment DEFICIT in Q1 2021 was about $430m, 12 months later it is about $1bn.
6. Investor confidence was wavering 12 months ago but now it is at its lowest.
7. Our fiscal framework though terrible 12 months ago, is NOW in a horrible state.
“Get ready for turbulence but remember this is self-inflicted.” He said.