Renegotiate IMF deal - Economist tells government
The Government of Ghana, under the presidency of Nana Addo Dankwa Akufo-Addo, must go back to the International Monetary Fund (IMF) and renegotiate the terms and conditions of the deal the past government signed, Adu Owusu Sarkodie, a business analyst, has advised.
According to him, the terms and conditions agreed upon by the past government do not support the programmes and plans of the current administration to industrialise the economy, hence the need to invite the Breton Woods institution for renegotiation.
Senior Minister-designate Yaw Osafo Marfo, during his vetting by the Appointments Committee of parliament, hinted the current administration would re-examine the deal.
He further stated: “Most targets set between the IMF and NDC government have been missed, so whether we ask for it or not, the IMF would themselves want the programme reviewed, because if we talk about ensuring that your growth at the end of the year being is 5.3 per cent and your growth at the end is 3.3 percent, then it is the way out.”
Commenting on this development on TV3’s Business Focus programme on Monday February 6, Mr Sarkodie called on the government to go ahead with the plan to renegotiate the deal.
He said: “They (government) should review it because they have their manifesto and the IMF deal was undertaken by a party that had a different manifesto.
“You have campaigned to reduce taxes but the programme does not have subsidy or tax reduction anticipation, so when you bring tax reduction anticipation you must go back to the negotiation table and renegotiate.
“The time that we were entering into the (IMF) programme our arrears was about GHS6.5billion and now we are talking of over GHS7billion. If it is true that arrears are over GHS7billion, then it is a total violation of the whole thing and so you have to go back and renegotiate.
“Your budget deficit now is into a single digit so the fiscal consolidation path is now being missed and we must go back and renegotiate for better terms.”