By Michael Ahinsah
Economic Expert, Seth Peter Terkper, has commended the government for its efforts in securing a Staff-Level Agreement with the International Monetary Fund.
Ghana managed to secure a staff-level agreement with the International Monetary Fund for a $3 billion bailout, a key step in the West African nation’s plans to restructure its unsustainable debt.
In view of this, Seth Peter Terkper posited that this agreement between Ghana and the IMF deal is one of the fastest negotiations considering the situation we currently find ourselves.
He, however, indicated that going to the IMF is not pleasant news but per the economic situation Ghana finds itself currently the move with IMF should be considered “a bitter pill to swallow” explaining that it is all part of government effort to rejuvenate the economy.
“Though it is not pleasant news to go to the IMF because we could have been able to manage ourselves it is a bitter pill and we have to close our eyes and take. Whether the medicine is bitter or not you have take it because you have to get well and think that is where Ghana is now. Ghana needs to get well in terms of economic depression”
Mr. Seth Terkper also hinted that this agreement is just the beginning as economic policy agreement is still subject to approval by the executive management board.
He explained that the government must meet certain requirements of the IMF which would prove that indeed there are measures in place to resuscitate the economy.
“The actual work is now going to begin where you have to go through the process. Documentation, and supporting documents before it will go to the board for approval. And now what has been put on paper would have to be transferred to documentary evidence and that is why they are saying that a lot more needs to be done”, he hinted.
He further indicated that for the approval to be successful, it would take collective efforts from all the Unions and other stakeholders elaborating that Government must prove that Ghana’s creditors have agreed to Debt Restructuring Program which will bring Ghana’s debt level down.
“If they are all not aligned then it will just be mere talk and it will drag the approval stage further because these are requirements that need to be presented to the board that this is what we have agreed on. A lot of work is yet to begin and that is why we need to engage very well”, he said.