loader

Ghana's Economy Performs Better Under IMF - Mark Assibey-Yeboah

Former Member of Parliament for New Juaben South, Mark Assibey-Yeboah, has categorically stated that he will as Finance Minister park the country’s economy at the International Monetary Fund (IMF).

In an interview with Accra-based Citi TV on July 5, the former Chairman of Parliament’s Finance Committee argued that the country’s economy is better managed under a Fund programme.

He also stressed that it was more prudent for the country to be borrowing from the Fund than the open market.

He explained further, that it was more prudent to borrow from the IMF because loans contracted from the Fund attracted zero interest.

“I argue that when the IMF are in town, we get things done right. If you go back to the programme we had under Atta Mills 2009 – 2012….fantastic. the macro indices at the time, the best we have seen in a longtime between 2009 and 2012. The moment the Fund left in 2012, everything went berserk. If I were Finance Minster I’ll park the economy at IMF,” Dr. Mark Assibey-Yeboah said.

“The IMF is like the Bank of Ghana to all countries…you fall on them for assistance. We borrow on a weekly basis. This Friday, there will be an auction, we will borrow about GH₵1 billion.

“Last week we borrowed. Every Friday we go for auction at the Bank of Ghana, we borrow money. We borrow at 27% [interest rate]. If you go to the Fund and they give you $1 billion, it will be interest-free…0%. They will give you a moratorium and give us 25 years to repay,” he explained further.

Background

President Akufo-Addo on July 1 ordered the Finance Minister, Ken Ofori-Atta to begin formal engagements with the Fund.

The move has since divided public opinion. While some welcomed the decision, others have criticized the government for not remaining committed to its decision not to return to the Fund earlier.

Meanwhile, an IMF team has arrived in the country to begin initial engagement processes. The team is led by Carlo Sdralevich, who is the mission chief for the country.

Mr Sdralevich in statement said: “The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering pandemic.”