Ken Ofori-Atta, the minister of finance, has defended the government’s decision to turn to the IMF for a financial rescue.
Ken Ofori-Atta claims that among other global issues, the coronavirus outbreak and the ongoing war in Russia and Ukraine compelled the administration to seek assistance from the IMF.
The globe is not in normal times, Ken Ofori-Atta said, despite the government’s efforts to strengthen and stabilize the local economy for a Ghana beyond Aid.
The Finance Minister, appearing before parliament to present the mid-year budget statement on Monday, July 25, said, “Yes, I know this Government assured the nation of a Ghana beyond Aid and our plans and programmes for economic transformation have been designed to achieve just that, and indeed, I did say that Ghana would not embark on an IMF programme. We did not just say it. We also took measures towards the attainment of that objective including the passage of the Fiscal Responsibility Act and instituting a number of irreversibility measures, and also launching the Ghana CARES “ObaatanPa” programme for economic revitalisation and transformation.”
“Unfortunately, unprecedented global developments over the past two years, especially in these last six months, have really and truly disrupted our efforts. Governments across the world have had to change course to tackle the current crisis. Governments that less than a year ago were busily talking about energy transition and green and cleaner fuels have gone back to firing their coal plants. Governments that are known for low taxes are now raising taxes to tackle growing deficits. These are not ordinary times; not for Ghana, not for Africa, and certainly not for the whole world,” he added.
Ghana’s total public debt stock, as of June 2022 stood at US$ 54.4 billion.
The most recent report issued by Ghana’s central bank, the Bank of Ghana, stated this.
On July 5, a team from the IMF headed by Carlo Sdralevich arrived in the nation to speak with the administration about a potential rescue.
The government claims that the IMF program aims to, among other things, restore macroeconomic stability and protect debt sustainability.