There's nothing wrong with renegotiating IMF deal - Joe Jackson defends incoming government

The Chief Executive Officer of Dalex Finance, Joe Jackson, has defended the newly elected Mahama administration's decision to renegotiate Ghana's agreement with the International Monetary Fund (IMF).

His comments come in response to a statement made by Professor Steve Hanke, an American economist and professor of applied economics at Johns Hopkins University, who criticised the decision and labeled the President-elect as incompetent for seeking to renegotiate the IMF agreement.

Defending the incoming government, Joe Jackson questioned why renegotiating the IMF deal should be considered a sign of incompetence.

“Professor Steve Hanke, what is so wrong with renegotiating Ghana’s IMF deal that you would brand our incoming government incompetent?,” Jackson wrote in a post shared on X.

He added, “They haven’t even been sworn in yet! Let’s all have patience. Rome was not built in a day.”

Background

During a recent courtesy visit by the United Nations Resident Coordinator Charles Abani, the UN official underscored the importance of partnerships that align with Ghana's current economic realities and the vision of the incoming administration.

“This adjustment is crucial and will help put the new government that will be inaugurated next year on the same springboard with our development partners to begin the rebuilding of the economy and the country,” Abani stated.

The President-elect, John Dramani Mahama, also expressed his intention to engage with international institutions like the IMF and World Bank promptly.

"Looking at the existing programs, we need to tweak them to meet the realities of today," he emphasised.

Reacting to Mahama’s decision to renegotiate the IMF deal, Steve Hanke posted on X, stating, “#GhanaWatch: President-elect Mahama wants to renegotiate Ghana’s IMF deal for 'RADICAL CHANGES' to smooth loan payments. HERE WE GO AGAIN. More Ghanaian INCOMPETENCE.”

Meanwhile, Ghana is currently under a 36-month, $3 billion Extended Credit Facility with the IMF. The country also has agreements with the World Bank, including $250 million each for the Ghana Financial Stability Project and the Ghana Energy Sector Recovery Programme.

Prof Steve Hanke,

What is so wrong with renegotiating Ghana's IMF deal that you brand our incoming Government incompetent?

They have yet to be sworn in! Let's all have patience.

Rome was not built in a day.#PatienceForGhanaReset https://t.co/SmNT9TqEwd

— Joe Jackson (@Joe_Jackson_GH) December 27, 2024

RAD/EB

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