Ghana (Commonwealth) _ Officials from Ghana said on Thursday that the $3 billion bailout package granted by the International Monetary Fund (IMF) for the country would help “reset the economy” and lessen the hardships faced by the people of Ghana.
The credit facility agreed by the IMF to support the country’s economic growth recovery plan is “far from a magic solution wand,” but it is “a crucial first step on the journey of strong reforms and inclusive growth,” Ghana’s minister of finance Ken Ofori-Atta said in an online briefing.
Ghana recently agreed to a new bailout package worth $3 billion (£2.4 billion) over three years with the International Monetary Fund (IMF) to assist alleviate the issues. The country is going through its worst economic crisis as a result of an increase in the cost of commodities of 41% on average over the previous year and skyrocketing inflation, a depreciating currency, and increasing public debt that is consuming the majority of its declining revenues
Authorities are hoping that the IMF bailout, which will be distributed in numerous tranches over three years, would ease the country’s economic problems, but analysts caution that the country also needs more lasting reforms and better governance.
The government of incumbent President Nana Addo Dankwa Akufo-Addo was accused by opposition parliamentarians of mismanaging the economy of the country and forewarned that the IMF loan “will, without a doubt, bite hard on Ghanaians.”
Ernest Addison, governor of the Bank of Ghana, asked diverse industries to support the government’s economic plan as the first tranche of $600 million was anticipated soon. “Now is the appropriate moment to start the work. The acceptance of the initiative only marks the start of the hard job of improving Ghana, according to Addison.
At the briefing, the IMF stated that it will be keeping an eye on the execution of the economic programs based on the following three guiding principles: restoring macroeconomic stability, guaranteeing macroeconomic growth that is sustainable, and building the groundwork for greater and more inclusive growth.
“This program, policies, and reforms will help… pave the road for a brighter future for all Ghanaians, together with the debt restructuring. The economy will become more resilient and capable of withstanding shocks in the future, according to Stephane Roudet, head of the IMF mission to Ghana.
In Ghana, the IMF’s approval raised expectations, especially for households who have been battling with declining incomes even as commodity prices keep rising. A businessman named Peter Kpodo in Accra, the capital of Ghana, lamented the country’s low sales as a result of the sharply rising inflation.
“Loaf (of bread) that we used to buy at 10 Ghana Cedis ($1) has shot up to 19 Ghana Cedis ($1.9), same for fish and other staples,” claimed Kpodo. “Unfortunately, wage levels have not increased as we had anticipated, and as a result, life is simply difficult for us.”
