Member of the Finance Committee of Parliament, Dr. Mark Assibey Yeboah says instead of the economic miracles the International Monetary Fund (IMF) is wishing for Ghana to put the economy back in shape, the country rather needs prudent economic management to address the fiscal challenges facing the country.
The IMF says unless an economic miracle happens, short-term vulnerabilities would put Ghana’s economy out of shape.
According to the Breton Woods Institution, which the government is courting for a possible bailout, current vulnerabilities have put Ghana’s transformation agenda at risk, explaining that, “Short-term vulnerabilities have risen significantly amid high fiscal and current account deficits.
“The international reserve position has weakened alongside mounting public debt. High interest rates, and a depreciating currency have begun to weaken private sector activity, and spreads on Ghana’s Eurobond have risen above those of regional peers,” the latest IMF Staff Report has said, basing on their recent visit and engagement with key managers of the Ghanaian economy.
Buttressing the IMF’s point on Okay Fm’s morning show, the NPP Member of Parliament for the New Juaben South Constituency said the 22 point Consensus generated at the National Economic Forum has shown that the country is in hard times, which needs prudent economic management rather than spiritual intervention or a miracle as the IMF seems to suggest.
Dr. Mark Assibey Yeboah stressed that with the level of economic crisis facing the country; which has forced many companies to lay-off workers and a fallen currency, the correction of the economic mess will need more than 3 years to restore with even any condition of prudent management from the government.
“If IMF says we need miracle to save our economy, I don’t believe in economic miracles but I think that prudent management of the economy is needed to save the country…..Those unnecessary payments made to GYEEDA, SADA and to individuals and companies; we should retrieve all those monies. Government should stop the excessive borrowing because now every loan the government takes is used to pay back interest of old debts; hence this has made the government impossible to pay statutory bodies to start development…..there was a deficit in 2012 and another was made in 2013 and so we have double deficits to settle; this is why IMF foresees no hope for our economy in the short-term vulnerabilities… this is going to be 3 years in the minimum but even with that, there should be prudent management; it can take 3 to 5 years to resolve the economic situation or put our fiscal house in order,” he asserted.
Source: GhanaWeb
