Business News of 2014-05-12

IMF reacts to TUC’s call

The International Monetary Fund has reacted to calls by the Trade Union Congress that Ghana should reject the fund's advice on the economy as well as financial support.

General Secretary of the Trades Union Congress at the May Day celebrations, Kofi Asamoah asked President Mahama to resist the IMF’s economic advice and challenged him to lead Ghana out of what he says are the current harsh economic crises.

Kofi Asamoah blamed the Washington based institution for the current economic challenges facing the country.

But speaking at a press briefing with some journalists at the Headquarters of IMF in Washington, Director at the Communications Department, Gerry Rice says as far as he is concerned, Ghana has not requested a new programme from the IMF.

“Our Board discussed the Article IV review on Ghana on May 5, and we will have a press release on that in due course. The IMF consults with a wide range of stakeholders, and in particular the Ghana team has had meetings with the Trade Union during its visits to Accra to exchange views on the country's outlook and challenges.”

The Managing Director of the IMF Christine Largarde at the recent IMF spring meetings told Joy Business that the era where financial assistance comes with tough conditionalities is over.

She, however, assured Ghanaians that they should note that the FUND's plan now is to support Ghana's own proposal that the country would put forward. Finance Minister, Seth Terkper has told Joy Business turning to the IMF for a financial support is something that is still under consideration.

He, however, maintained that support could also come in the form of technical advice in the areas of revenue mobilization and taxes, which the FUND has always extended to the country.

Meanwhile, Joy Business has gathered that government has presented to the IMF what they describe as their home grown program to addressing the current challenges facing the country.

Sources say the highlights of the program include cutting down government expenditure, the wage bill as well as reducing subsidies on petroleum products gradually.

It is, however, unclear whether the home grown program submitted to the IMF is part of the process in securing the financial bailout from the FUND.

Source: myjoyonline.com
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