General News of 2014-08-17

IMF bailout may compel gov’t to forgo some loans – Akoto Osei

Minority Spokesperson on Finance, Akoto Osei has hinted the International Monetary Fund intervention could compel the government of Ghana to abandon some loans it is currently pursuing.

This, he said, could occur when the Bretton Woods institution begins auditing the government’s accounts in the coming months when officials of the IMF meet with government officials in Accra.

Two weeks ago, the government announced its decision to opt for an IMF bailout in order to save the ailing economy from sinking further.

The decision to turn back to the IMF and other development partners was one of the major resolutions reached after President John Mahama met with the Presidential Advisory Committee on the Economy at Peduase Lodge recently.

Speaking to Joy News, Dr. Osei indicated there was no way the IMF team would come to the country and accept what the government puts on the table.

“The IMF is supposed to dress you, as the president said, for credibility. I don’t want to pre-empt the negotiations, but they are going to be very tough negotiations. I am telling you the CDB loan will come up; any other loan that we have approved lately in Parliament will be on the table because they must know,” he said.

The spokesperson explained that the team from the IMF that will be in the country early September, would start its investigations from the Bank of Ghana to ascertain how much the country has borrowed coupled with accrued interests to be paid.

The team, he added would also inquire about pending loans the government intends to take.

And if it turns out those loans and interests are expensive, “automatically, they will say 'look – this one is too expensive. If we are going to give you the balance of payment support; I’m sorry.'”

Source: myjoyonline.com
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