Economist, Dr. Ishmael Yamson, says it is time government rethinks its stance on not joining an International Monetary Fund (IMF) programme.
According to him, at this critical time in the country’s economic history amidst the country’s down-rating by international rating agencies, challenges posed by the post-Covid economy and the Russia-Ukraine war, the best option for the country is to join an IMF programme.
The Economist explained that signing up for an IMF programme will provide both the funds and the investor confidence the country badly needs to sail through this fiscal storm.
Speaking on Ghana’s economic woes and the need to join the IMF on PM Express Business Edition, he said, “So you then have to ask yourself, in the short term, how do we stabilize the ship? This is a huge ship. Then you can then think about medium-term and then long term. Investors lost confidence because they are doubtful that you can service your debt.
“So the short term will be finding money quickly, something that will recreate, rebuild the confidence quickly. My experience in this country is that the best option would have been to go to the fund because the Fund will restore investor confidence immediately. Will also give you access to money the two things that you need critically are with the Fund right now.
“And everybody , I don’t think that I am saying this because I don’t respect the position of government, I respect it. But if you ask me, I will do exactly what I am saying, that in the short term, I’ll take a Fund programme. Because our history says that; there’s no reason why because you have a Fund programme that says you’re a bad manager of the economy.”
He noted that the government should not be worried about what those in opposition would say concerning their U-turn on their decision not to join the IMF.
He argued that joining the IMF was not a marker for poor governance, but rather the need for some assistance to deal with the current challenges facing the economy.
“The people who you succeeded themselves run a Fund programme. You came into office to say you’re exiting, you won’t go back. That for me is the challenge. And I’m saying yes, maybe at the time you made that judgment, and that statement, you never thought that there will be Russia-Ukraine war that will create a huge problem for your economy.
“I have seen a chart of fuel price increases; we’re just number three in the world. Eighty-something percent increase, so you’re faced with a major crisis, I think the immediate reaction will be how do we stabilize this ship.” – myjoyonline