The government will need to have a second look at its strategies for honouring financial commitments made to the people, an economist at the University of Ghana Dr Patrick Asuming has said.
Dr Asuming says he has problems with the way that the government is handling the financial obligations to the people.
He explained that with the coming on board the $3billion International Monetary Fund (IMF) deal, the government will have to meet the people and explain to them why they need to make adjustments to their lives in order to help ensure a successful IMF programme.
The people will only listen to the government and support if the authorities are truthful in honouring their commitment, otherwise it will be difficult for them to support, he said.
His comments follow the threats by the Individual bondholders to picket at the Finance Ministry today Monday, July 11 to demand the payment of outstanding principals and coupons after they accused the government of failing to honor the agreed payment plan outlined in the Memorandum of Understanding (MoU) signed with the Coalition of Individual Bondholders Groups (CIBG).
Even though the planned picketing has been suspended following the announcement by the Finance Ministry at 11:30 PM Monday that the arrears on coupons and principals have been paid, Dr Assuming wants the government to sit up.
“The government really needs to have a [second thought] about its strategy,” he told Paa Kwasi Asare on the Business Focus on TV3 Monday, July 10.
He added “The government is really destroying social capital and social trust that is important to implement the IMF programme.”
“The government will need to have discussions with Ghanaians and make a commitment and people will expect that for a short term, they are going to endure this and some relief will come.
“So if you start on this note where the government does not meet its obligations it creates problems,” he explained.
Regarding the outstanding arrears on coupons and principals of individual bondholders, the Ministry of Finance announced that it has settled all of them up until 19th June.
The Ministry of Finance in a statement issued on Monday, July 10 said “The Ministry of Finance takes this opportunity to thank all bondholders for their continuous support during this period of tight liquidity.
“Government is confident that in working with all stakeholders, we shall restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic”, the statement added.
