VP Dr. Mahamudu Bawumia has opened up on why Ghana has been compelled to hurry to the International Monetary Fund (IMF) for a help program.
Talking at the Accra Business School on Thursday, July 14, 2022, the Vice President conceded that pundits who go against the public authority's affirmation that ongoing difficulties are just brought about by Covid-19 and the Russia-Ukraine clashes are correct.
As per him, past the shocks experienced by the two outside factors, there are other inward factors that has driven Ghana to where it is right now.
He contended that the demolished obligation supportability circumstance of the nation is likewise brought about in huge numbers his administration spent on the monetary area cleanup and the Energy Sector Excess Capacity Payments.
"The Ministry of Finance appraises that the interest installment on this acquiring for the three things adds up to GHC8.5 billion yearly. This is some 23% of Ghana's yearly interest installments of GHC 37 billion.
"It ought to be noticed that without the GHC54.0 billion obligation for the three outstanding things (COVID-19, Financial Sector, and Energy), Ghana's obligation to GDP would be inside the manageability limit of some 68% rather than the 76.6% toward the finish of 2021," Dr. Mahamudu Bawumia said.
The Vice President added, "Assuming you take out the financial effect of this fourfold whammy, Ghana won't be going to the IMF for help in light of the fact that our monetary, obligation, and equilibrium of installments standpoint would be feasible.
"Of the four variables, two (COVID-19 and the Russia Ukraine war) were outer and the other two (the financial area tidy up and the abundance limit installments) were the aftereffect of approaches of the past government."
Presently previously looking for help from the IMF, Dr. Bawumia recommends that the nation should guarantee it comes out more grounded with a ton of advantages that will move development and improvement.
"..sadly, based on where we are today, there is no apparent resolution for the Russia-Ukraine war. While we expect a fast finish to the conflict, we should comprehend that things could deteriorate before they improve.
"We ought to arise more grounded than we have in the past 17 IMF programs. It will take difficult work and hard choices," Dr. Mahamudu Bawumia commented.
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