Dr. David Yaw Mordy, an economist, has stated that Ghana should not consider approaching the International Monetary Fund (IMF) once more for assistance.
He claimed that because the IMF frequently imposes conditions that are unfavourable to the average Ghanaian, those in charge of managing the economy should not consider turning to them for help.
On Monday, June 27, Dr. Mordy discussed why nations turn to the IMF for credibility in their policy decisions during the midday news segment on 3FM with Eric Mawuena Egbeta.
He asserted that credibility might be established without the backing of the Bretton Woods system. "The issue relates to the economic fundamentals of our country's economy, including the exchange rate, Gross Domestic Product, inflation, and other indicators, especially inflation. GDP is booming, and inflation is currently between 27% and 30%.
In Ghana, things are exceedingly difficult, but that doesn't mean we should choose the IMF. We are aware that the IMF imposes several conditions, many of which are unfavourable to the average Ghanaian. As a result, the IMF shouldn't be considered.
"We seek policy credibility from the IMF. If you spend too much in 2020, you attempt to cut back the next year. The Fiscal Responsibility Act, which we passed into law, requires you to fall within a specified range. The only way we can address the core problems in the economy, he continued, is for everyone to cut down on their consumption and increase their capital investments.
He made his remarks at the same time as Gabby Otchere Darko, a prominent member of the ruling New Patriotic Party (NPP), declared that, in principle, he was not opposed to the IMF programme.
Gabby clarified that he opposes an IMF policy that provides the nation with pitiful aid but sets restrictions that would ultimately harm the nation. On Monday, June 27, he stated in a series of tweets, "Am I against an IMF programme in principle? No”
"I oppose an IMF programme that offers us pitiful sums of money while imposing requirements that would ultimately harm the poor, employment opportunities, and companies more. The Covid-19 and the Ukraine War are more to our demise than to that of Africa. Programs that claim to be entirely our own work are bound to fail.
"We take action that will boost our ability to weather this powerful storm, and that action ought to take place quite soon. Do you object to an IMF programme?
Ghana has to return to the IMF, according to Mr. Joe Jackson, Chief Operations Officer of Dalex Finance. In his opinion, the nation would not be able to overcome its budgetary problems without seeking assistance from the Bretton Woods system.
On Tuesday, June 21, Mr. Jackson remarked in an interview with TV3's Komla Adom for the midday news, "I think the IMF is the greatest choice to limit the excesses we confront.
"Our budget deficit is enormous, we have little fiscal room, and we need the IMF's assistance to keep the international markets open and the money flowing. In all honesty, I don't see how we can avoid going to the IMF.
Recently, Dr. Adu Sarkodie, another economist, predicted that Ghana will certainly request assistance from the IMF again.
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