WAMI members in arrears of subscription to WACB

Accra, Sept. 5, GNA - No country has fulfilled its financial obligation towards subscription to the capital of the West African Central Bank (WACB) under the West African Monetary Zone (WAMZ). They have, however, fulfilled their obligations to the West African Monetary Institute (WAMI) and the stabilization and cooperation fund. Dr Michael Ojo, Director-General of WAMI, said on Friday that the date for payment of first instalment of the capital passed last June with none of the five countries - Ghana, The Gambia, Sierra Leone, Nigeria and Guinea - showing any sign of commitment.

WAMI is the body charged to prepare the grounds for a single monetary union.

Dr Ojo said the members of WAMI, have three obligations - financial obligation toward WAMI itself, the stabilization and cooperation fund and the one for subscription for the establishment of the West African Central Bank.

Dr Ojo, who was briefing Journalists about the outcome of the West African Monetary Zone Meetings in Abuja last month, said the situation would soon change, as the Authority of Heads of State had ordered their Finance Ministers to pay their arrears by December. WAMI would do well to ensure that the lack of an active hegemonic leader in the West Africa Sub-Region would not be a damper on its objective, he said.

"We will do all it takes to make Ghana and Nigeria play that role," Dr Ojo said.

"The two countries have had their fair share of economic woes over the last three years, which have affected their economies in general because of which their commitment to the fast track has slowed down. "But with most of these things now behind them, it is possible that things will move faster with Ghana and Nigeria at the forefront." He said WAMI's priority now is to become a strong partner in developing programmes and polices for national budgets with the aim of ensuring that the aim of member countries at convergence falls within time.

On what WAMI would do if some countries were unable to meet the criteria within the next two years, Dr Ojo said: "We are not going back. We are very confident and serious about what we are doing. We are gong to place priority on policy issues towards meeting convergence.

"Those who are unable to be there in 2005 will be assisted. But we will admit them with a focus on their track record and commitment to applying the right polices towards meeting convergence criteria."

Dr Ojo explained that when a monetary union is established, WAMI would put in a new set of stringent rules to make the union viable. "For instance, no country will be able to borrow from their central banks. Now there is some borrowing going on. But when we are on full steam, no one can borrow from the central banks."

He said WAMI would soon get involved in developing country papers and budgets for member countries. 05 Sept. 03