The World Bank Country Director for Ghana, Liberia, and Sierra Leone, Mr Pierre Laporte, says Ghana stands to benefit from going to the International Monetary Fund (IMF) if the country plans on going on an aggressive debt rescheduling program.
President Nana Akufo-Addo and the Minister of Finance Ken Ofori-Atta, have on multiple occasions shot down suggestions for the government to resort to the International Monetary Fund IMF to revive Ghana’s ailing economy.
The government despite harsh criticisms has said that the most prudent measure in the face of Ghana’s ailing economy is not to go back to the IMF but rather rely on the E-levy among others to raise revenue domestically while cutting down on government expenditure.
Some analysts have proposed seeking an IMF bailout as a better alternative amidst public disapproval of the E-levy, but the government has said it will have none of that.
Meanwhile, the International Monetary Fund (IMF), has stated that it is ready to support Ghana in any way deemed useful by the country’s leaders amidst the economic challenges.
It says Ghanaian authorities have not contacted it for any form of assistance yet.
Commenting on whether or not Ghana should go to the IMF, Mr Laporte maintained that even though going to the IMF comes with its benefits, Ghana may not need to go to the Bretton Woods institution if the government takes strong measures to restore macro-economic stability.
“My basic principle is no country should need the IMF, truly speaking. Many countries don’t have an IMF program but they are performing very well. The reality however is that some countries due to their performance need the IMF. There’s a lot of debate on whether Ghana should go to the IMF. It’s not my place to comment but there are a lot of advantages of going to the IMF, for instance, if Ghana wants to undertake an aggressive debt rescheduling program. It will then help to have IMF on-board because most creditors will ask you about the program underpinning your debt relief that will ensure macro-economic stability is restored.”
“At the same time if the government really takes strong enough measures to restore macro-economic stability then maybe it doesn’t need the IMF,” he added.