An economist and political risk analyst, Dr Theo Acheampong has indicated that the government could have gone to seek a bailout from the International Monetary Fund (IMF) much earlier than it.
He stated that the government did not listen to earlier sound economic advice from economists to go to the Fund.
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.
Prior to going to the Fund, Finance Minister Ken Ofori-Atta had indicated that the government would not go because a number of policies had been introduced to deal with the economic challenges.
Speaking on the Key Points on TV3 Saturday, May 20, Dr Theo Acheampong said “We could have gone to the IMF much earlier if the government had actually listed to sound economic advice coming from various quarters including some of us working in academia and in civil society.”
Meanwhile, the Ministry of Finance has confirmed that the first tranche of $ 600 million of the $ 3 billion Extended Credit Facility (ECF) has been received by the Bank of Ghana (BoG).
The cash, according to the Ministry, is to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth.
“The first tranche of $600million of Ghana’s low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth,” the Ministry tweeted on Saturday, May 20.
The first tranche of $600million of Ghana's low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth.
— Ministry of Finance, Ghana (@MoF_Ghana) May 20, 2023
Finance Minister Mr Ofori-Atta earlier stated that the second tranche was expected to be received in the next 6 months.
Speaking at the IMF-Ghana joint press conference held in Washington on Thursday, May 18, he said “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 $3billion.”
The IMF Mission Chief for Ghana Stéphane Roudet indicated that the $3 billion bailout would result in reforms in the energy and cocoa sectors.
Also, he said the programme would 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.