Business News of 2014-04-28

Ghana must seek bailout now - Financial Analyst

A financial analyst has cautioned Ghana against being hesitant in seeking a bailout from external donor partners in the shortest time.

According to Mr. John Gatsi, the current liquidity challenges crippling the country must be urgently confronted to halt further fall in the country’s reserves.

Government still owes contractors, while many district assemblies are yet to receive their mandatory allocations.

This applies to other sectors of the economy.

Government is hesitant going for a bailout and still hopes to find home-grown solutions to these challenges, but Mr. Gatsi is worried the situation can worsen if the liquidity problem isn’t fixed soonest.

“A lot of measures have been put in place and what is left now is to get serious liquidity in terms of Ghana cedis and foreign currency into the economy and the managers of the economy know where to go get that quick liquidity in order to stem down the free in the currency rapidly”.

Quite clearly the only thing left for us to overcome somehow is short term effect of the depreciation while we focus on the long term solution is liquidity and the mangers of the economy must work very hard to shore up the liquidity position of the country.

“Those saying we shouldn’t go for this liquidity shore up from we can get it currently; they should tell us what programme they have to give us that liquidity within the shortest possible time” Mr. Gatsi added.