Ghana likely to get IMF programme without money

Managing Editor of the Insight Newspaper, Mr Kwesi Pratt Jnr has said Ghana will likely not get the financial support its seeking from the International Monetary Fund (IMF).

Ghana is seeking some $3billion from the IMF to assist it bounce back from its current economic crunch which is already biting hard on its citizenry.

But Mr Pratt said what the country is like to get is a programme with no monetary support or just a little of it.

According to him, the country’s debt level is currently not sustainable and that will be a determined factor in the IMF’s decision whether or not to grant the country’s $3billion request.

He said, “IMF is going to give you money, it will give you money on the assumption that you can pay back”, a condition, the country is not likely to meet when given the financial support it is seeking.

Mr Pratt Jnr was speaking on Good Morning Africa on Pan African TV on Thursday, October 6, monitored by GhanaPlus.com.

Ghana’s debt to GDP to hit 104%

He was sharing his opinion on the World Bank’s projection that the country’s debt to Gross Domestic Product (GDP) will hit 104.6% by the end of 2022.

“Debt is expected to jump in Ghana to 104.6% of GDP, from 76.6% a year earlier amid a widened government deficit, massive weakening of the cedi, and rising debt service costs. The country’s debt is expected to remain elevated at 99.7% and 101.8% of GDP in 2023 and 2024, respectively,” the Wold Bank’s October 2022 Africa Pulse Report said among other things.

“So that is what it means, it means our debt level is not sustainable and it cast doubt on whether on or we can get a bail out from the IMF because if the IMF is going to give you money, it will give you money on the assumption that you can pay back,” Mr Pratt Jnr said.

“When your debt to GDP ratio is 104.6%, your debt is not sustainable and I found it very difficult to come to the conclusion that by the end of this year as they claim, the IMF will give us $3billon. It doesn’t make sense. What I think that we are likely to get is an IMF programme without money or very little money, if you look at the fact and so on that is what we are likely to get. So am not so optimistic” he noted.

IMF 17times appearance shows it is not an option for Ghana – Kwesi Pratt

Mr Pratt Jnr opined the IMF’s can’t solve the country’s developmental challenges and called for home grown policies to address them.

He mentioned Ghana has been to the international body 17times already but there is nothing to show for it and that should be enough prove that it is not an option for that the country should rely on.

“Beside if you look at the objective of the International monetary fund, the objective of the international monetary fund is to help us to develop, is not to bring the prices of kenkey down, the objective of the IMF is to keep the finances of the Western system intact, it has nothing to do with our development effort and so on and the point which ever body is making the fact that we have gone there 17times and we haven’t been able to solve any of the problems we keep going there clearly shows that that is not the option for us,” Mr Pratt said.

Source: GhanaPlus.com