Economist, Dr. Patrick Asuming, is advising government to be more pragmatic in its fiscal policy direction post-bailout from the International Monetary Fund (IMF).
His caution is on the back of financial assurances from the country’s external creditors and the anticipated International Monetary Fund board approval for Ghana.
Speaking to Citi Business News, Dr. Patrick Asuming also a lecturer of Finance at the University of Ghana Business School urged government to exercise economic prudence to bolster macroeconomic stability after the US$3 billion balance of payment support.
“The government shouldn’t miscommunicate at all and give a wrong impression about what this means. A lot of hope has been banked on how going to the IMF will help us restore macroeconomic stability. Ghana’s economy has structural difficulties with government financing and the economy itself. Unfortunately, with the previous 16 times that we have gone to the IMF, we are not able to build on the stability in a way that we do not return”, he said.
Ghana secured financing assurances from the Paris Club following the establishment of the Official Creditor Committee co-chaired by China and France.
By this, the move will pave the way for the Fund’s Board approval of a programme for Ghana with the expected timeline of May 2023.
Government has already said, it expects to receive the first loan tranche of US$600 million from the IMF by Wednesday, May 17.
It is already eyeing Ghana’s possible return to the international capital market soon.
“This time too, I don’t see talks on how we are going to build on any stability that the deal will bring, so I hope that we turn more attention to that. What should happen after the IMF deal is that we ensure that the economy is not too dependent on foreign financing and the economy is more diversified. So, I hope that we focus more on that than start jubilating that our problems are over”, Dr. Asuming further warned.