Haruna Iddrisu
Member of Parliament for Tamale South Haruna Iddrisu has expressed concern over parts of Ghana’s agreement with the International Monetary Fund (IMF) to secure a $3 billion bailout.
According to him, the deal which he describes as overly ambitious may have some negative effects on the country’s fiscal space in the nearest future.
The lawmaker said the nature of the conditionalities will take a huge toll on the next administration that takes over from the incumbent.
“It appears to me that the IMF ECF that the government of Nana Addo Dankwa Akufo-Addo and Bawumia have signed is an overambitious one. It is overambitious in the sense that it is going to affect the fiscal space that may be available to a successor government. It may be John Mahama government and NDC government tomorrow,” he explained in an interaction with an Accra-based media outlet.
The former Minority Leader added that the programme which would run for three years would be disruptive for whoever takes over power in 2024 since the component of the deal has the potential of handicapping the next leader in their implementation of policies.
“Inherent in this agreement is that there shall be no non-concessional borrowing between now and 2027… there shall be no access to non-concessionary borrowing. So it means that… for concessional financing, the government may not be able to borrow between now and 2027,” Haruna Iddrisu explained.
He added that, “That is what excessive and reckless borrowing does to an economy apart from the debilitating effect on the private sector on businesses on employment.”
Ghana on Wednesday, May 17, 2023 secured a $3 billion bailout from the Fund. The loan is to ensure a stable economy and facilitate a quicker recovery of the ailing Ghanaian economy.
EAN/MA
