The Institute for Fiscal Studies (IFS), has cautioned of massive cuts in foreign aid and grants should government terminate the agreement with the International Monetary Fund, IMF.
According to the Institute, Ghana’s stay with the IMF program has sustained support from some donor agencies.
“Complete termination is not advisable because most of our development partners disperse their grants based on the relationship that we have with the IMF and in this particular case based on our commitment with the IMF so just abrogate the program will lead to a withdrawal or slow disbursement of some of our grants,” the Executive Director of IFS Professor Newman Kusi asserted.
The Minister Nominee for Monitoring and Evaluation and MP for Old Tafo, Dr. Anthony Akoto Osei has insisted that the deal was not approved by Parliament.
“Even though the IMF programme was signed by government, it was never approved by parliament… It is an executive arrangement between the government and the IMF, but the people of Ghana did not approve of it,” he said.
The new government is also expected to meet the managers of the Fund for its first review.
But the Executive Director of the Institute of Fiscal Studies, Professor Newman Kusi explains any attempt to overhaul the program will be undesirable for the economy.
“Already if some of the targets have been missed then obviously the government will have to go to the IMF and ask for waiver as part of the process of the IMF program and then those areas that depend need to be renegotiated at the appropriate time.”
In 2015, Ghana entered into an Extended Credit Facility (ECF) program with the IMF for 918 million dollars.
Already an estimated amount of US$464.6 million have been disbursed to Ghana.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana