The Vice President Dr Mahamudu Bawumia has said he cannot be blamed for Ghana’s decision to opt for an International Monetary Fund programme to stabilise the economy.
Bawumia has recently come under criticisms as head of the economic management team following government’s decision to seek an IMF bailout.
Speaking at the official launch of Accra Business School’s IT Programmes on Thursday (14 July), Bawumia said government’s decision to seek an IMF support is as a result of quadruple whammy .
“The energy sector excess capacity payments, the banking sector clean-up, COVID-19 and the Russia- Ukraine war are events that has pushed the country to seek the support of the Bretton Woods institution.”
“If you take out the fiscal impact of these quadruple whammy, Ghana will not be going to the IMF for a support because our fiscal and debt and balance of debt outlook,” Bawumia said.
He said the recent global economic challenges must also force Ghana to be more self-reliant.
Listen to the Vice President Dr Bawumia in the attached audio below:
Way forward
On the way forward for the country, Vice-President Bawumia said, “unfortunately, judging from where we are today, there is no end in sight for the Russia-Ukraine war. While we hope for a quick end to the war, we must understand that things could get worse before they get better.”
He said the major lesson of the last two years is that “we have to be more self-reliant as a country. It is important that we take decisions that will inure to the benefit of the country regardless of whether we are going to the IMF for a program or not.”
According to Dr Bawumia, the immediate task for the country is to restore fiscal and debt sustainability – through revenue and expenditure measures and structural reforms, adding that “non-concessional borrowing should be curtailed to enhance debt sustainability.
Fred Dzakpata
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