A Deputy Communications Director of the governing New Patriotic Party (NPP) Abdul Kamal Deen has said that factors that pushed the Akufo-Addo-led government to the International Monetary Fund (IMF) are not the same as those that existed under the Mahama administration.
He said Mr Mahama’s gross incompetence in managing the economy forced him to go the Fund for support.
Under the Akufo-Addo, he said, the factors are global due to the Covid-19 pandemic and also the ongoing Russia and Ukraine warfare.
Speaking on the New Day show with Johnnie Hughes, on TV3 Tuesday July 19 he admitted that the Akufo-Addo administration had stated previously that it was not going to seek support from the Fund, however, due to factors beyond the government’s control that decision had to be aborted, to invite in the Fund to provide assistance.
“Gross incompetence, to the extent that [John Mahama] himself said he had assumed the status of a dead goat. Dumso occurred because of their abysmal performance,” he said.
He added “What got us to go to IMF after Senchi under Mahama? The factors that goy us to go to IMF today, were they the same then? No.
“[John Mahama] had said Prof Mills bequeathed a great economy to [him] but you couldn’t sustain and destroyed, he ran to IMF.”
He was reacting to a comment by Tamale Central member of Parliament Murtala Mohammed who accused the Akufo-Addo administration of mismanaging the economy hence, the decision to go to the Fund for support.
Meanwhile, the IMF has stated its commitment to help Ghana resolve its challenges.
The staff team led by Carlo Sdralevich concluded its visit to Ghana with the government of Ghana on Wednesday July 13.
The team arrived in the country July 6 to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by an IMF lending arrangement.
The IMF team met with Vice President Dr Mahamudu Bawumia, Finance Minister Ken Ofori-Atta, and Governor Ernest Addison of the Bank of Ghana.
They also met with the Parliament’s Finance Committee, civil society organizations, and development partners, including UNICEF and the World Bank to engage on social spending.
At the conclusion of the mission, Mr. Sdralevich issued the following statement said “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”
The Government of Ghana on Friday July 1 announced that it was seeking support from the IMF.
This followed a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund, a statement by the Ministry of Information said.
