A Professor at the University of Ghana Business School (UGBS), Godfred Bokpin, says the global geopolitics is affecting “vulnerable” countries like Ghana, making the application for a bailout from the International Monetary Fund (IMF) difficult.
Prof Bokpin said the West African nation needs assurances from its bilateral and multilateral partners before the IMF’s Executive Board can be convinced to approve the request for the $3 billion extended credit facility (ECF).
The Minister of Finance, Kenneth Ofori-Atta, is joining the Spring Meetings of the Fund in a last-ditch attempt to secure a bailout for the country’s ailing economy.
Speaking on TV3‘s News 360 on Tuesday, April 11, Prof Bokpin conceded that “this week is a critical week for Ghana” as a result of the Meetings.
He pointed out that by the close of the Meetings, there will be clarity in terms of timelines for Ghana’s application submitted on Friday, July 1, 2022.
But for him, it will be difficult for the country to secure a deal by the end of April.
“It’s going to be difficult for us to get [the IMF deal] by the end of this month,” he stressed, predicting middle of May as a possible date to get the deal.
Already, a staff level agreement has been reached between Ghana and the Fund but the Executive Board is yet to approve it.
Prof Bokpin adduced that currently the country has lost market access, both on the domestic and international front, and granting a bailout on the part of the Fund will only achieve limited effectiveness.
He said the only sure option left for Ghana is to secure funding assurances from the Paris and non-Paris Club creditors.