Consequences of IMF deal will bite hard, brace yourselves – Minority

The Minority in Parliament has asked Ghanaians to brace themselves for the harsh consequences of the IMF deal approved for the country.

The $3 billion loan facility was approved on May 17, 2023, after Ghana made the move to engage the fund in July 2022.

According to a statement signed by the Minority leader in Parliament, the side noted that it had cautioned the government severally on borrowing and other dealings.

The statement warned that some of the requirements of the IMF deal will result in an increment of tariffs that will have a negative impact on the pockets of Ghanaians.

It said “Let us brace ourselves for the full consequences of this IMF deal, which will without doubt bite hard on Ghanaians, especially the youth. This is not counsel of despair, but a reality that will soon dawn on all of us.

“Suffice it to say, that the Akufo-Addo/Bawumia government, as part of their proposal to the IMF to secure this deal, has agreed to increase utility tariffs every three months from last year. So far, since September 2022, electricity tariffs have gone up by a cumulative figure of 75.32% (27% in September 2022, 29.96% in the last quarter of 2022, and 18.36% a few days ago),” it added.

The statement called out the ruling government for defying all calls made by the opposition against reckless borrowing and fiscal consolidation.

It said “The Minority has on countless occasions cautioned this government that the fruits of its crass mismanagement of Ghana's economy through wanton misuse of borrowed funds for consumption purposes had long crystallized into a crisis. We urged the government to immediately seek the Fund's support long ago, a call that was flatly disregarded.

“The Akufo-Addo/Bawumia NPP government's continuous denial of the true state of Ghana's economy, and their strenuous attempts to shift responsibility and blame external factors have been clear from day one.

“Despite all the manipulations of the data to hide the true state of the economy, the real situation on the ground has no doubt subsequently compelled them to arrive at the doorsteps of the IMF like a patient in an emergency ambulance, desperate for immediate resuscitation,” parts of the May 18, 2023 statement said.

SSD/DA