IMF agreement will affect future government budget gap -Haruna Iddrisu
Tamale South Member of Parliament Haruna Iddrisu is concerned about aspects of the agreement between the Government of Ghana and the International Monetary Fund (IMF).
He described the agreement as very ambitious, due to some of the conditions offered. "I thinkthe IMF's ECF signed by the government of Nana Addo Dankwah Akufo-Addo and Bawumia is very ambitious. It is very ambitious and it will affect the fiscal space that can be accessed by the government that will succeed him. Perhaps it will be the John Mahama government and the NDC government tomorrow," he said on Joy FM.
This follows the IMF's approval of Ghana's program request for$3 billion in balance of payments support to stabilizethe economy. He says that the nature of the situation will havea great impact on the next administration that will succeed in power.
The IMF requires that, as part of a prudent debt management process, the government monitors the entry of debt by government-owned companies into public SPVs, by limiting and monitoring the issuance of guaranteed debt, by limiting lending and non-contractual procedures and to ensure that it receives payment. andpayments are made on time. time. Speaking on Joy FM'sSuper Morning Show, the former minority leader said he saw the development as potentially damaging the plans of whoever takes over the government in 2024, as the program lasts for three years. .
“Within this agreement, there will be no unsecured loans from 2027 ... there will be no possibility of unsecured loans.So that means... for the stimulus money, thegovernment may not be able to borrow through 2027,” he said on Thursday.
According to the lawmaker, "this is what excessive and reckless lending is doing to theeconomy other than the damaging effects of private companies and businesses and services".
Meanwhile, the Fund says Ghana has breached the Debt Sustainability Analysis (DSA) threshold, one of the conditionsthat led the country into debt. In a statement titled "Requestfor Arrangements under the Extended Credit Program," the Fund said Ghana is highly indebted. He added that the debt in the city is also unsustainable. “Given the ongoing debt restructuring and the significant and long-term breach of the Debt Analysis (DSA) threshold, Ghana is in debt default and the debt is considered unsustainable. "
The IMF further described Ghana's fiscal policy as characterized by high spending and weak domestic savings.
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