The Institute of Economic Affairs has described the Extended Credit Facility IMF bailout offered Ghana as a “straitjacket” programme which has rendered the managers of the nation’s economy with limited innovative economic ideas to turn the ailing economy around.
Ghana received the first tranche of the IMF cash on Friday, May 19 after successfully embarking on a domestic debt exchange programme.
The Institute argues amongst other things that the seventeenth IMF programme does not inspire economic dynamism for an expedited growth.
“In general, the programme places Ghana’s economic managers in a ‘straitjacket’, with very little room for policy discretion or manoeuvre. This is an “auto – pilot – like” programme, as it limits the opportunity to intervene in the economy to respond to changing dynamics,” he said.
He further reiterated calls for the country to strengthen its economic buffers to limit the impact of external shocks on the local economy.
“The Covid pandemic and Russia – Ukraine war has exposed Ghana’s existing vulnerabilities, culminating in the economic crisis that drove us back to the IMF. We need to learn lessons from this experience. Most importantly, even beyond the IMF programme requirements, we must begin to build strong economic and financial buffers including a sizable fiscal space, a cushion of reserves,” he added.