IMF deal: Hold off celebrations until MoU is signed - Economist

Economist and lecturer at the University of Ghana Business School, Professor Patrick Asuming, has called for measured expectations regarding Ghana's financial negotiations with the IMF.

In an interview with Joy News on April 19, 2024, he stated that while there are signs of nearing an agreement, celebrations should be held off until official documents are signed.

Professor Asuming pointed out that although the International Monetary Fund (IMF) and the Ghanaian government suggest that a Memorandum of Understanding (MoU) may be signed soon, possibly in May, it's crucial to finalize all details first.

He noted that the macroeconomic progress reported by the IMF might not be felt by the average Ghanaian, especially with the recent depreciation of the Ghana cedi.

“If we are that close to the MoU, then that's great. But until we put pen to paper, we cannot begin to celebrate. We have to first dot all the I(s) and cross all the T(s) before we know we have arrived.

“When you hear the comments coming from both the IMF and the government side, you get a sense that we are very close and that probably, most likely in May, whenever there's an IMF board meeting, you get a sense that by then the MoU will have been signed and Ghana will be ready to submit the second SLA.

“It's never time to jubilate as long as we are in this programme. From the IMF’s point of view, we've made a lot of progress. The macro indicators show that we've made progress. But I think you and I will agree that ordinary Ghanaians wouldn't feel that kind of progress. Don't forget that in recent times, the cedi has become wobbly. It's become extremely weak. After holding up rather well last year, it now begins to show signs of weakness. So, I think having all those agreements and having those additional releases will be very helpful,” he said.

Professor Asuming emphasized the importance of resuming government infrastructure projects paused due to debt operations, which will contribute to the country's economic recovery.

“The government also needs to resume some of the infrastructure projects that have been suspended because of the debt operation. So, I think all of those are going to be very helpful going forward,” he said.

He advised that while progress is being made, it is important to remain cautious until all agreements are officially in place.

ID/AE

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