Former President IMF conditionalities were bitter - Mahama

Former Prez of Ghana John Dramani Mahama says the skyrocketing debt of Ghana can be blamed on stringent IMF conditions.

  • Published:
play Former Prez of Ghana John Dramani Mahama
24/7 Live - Subscribe to the Pulse Newsletter!

Former President John Dramani Mahama has attributed the debt of Ghana to the ‘bitter conditions’ the International Monetary Fund (IMF) attached to its extended credit facility.

According to him, Ghana’s declining economy in the 70’s and 80’s required that it sought help from a bigger source to improve the situation hence the decision to buy into the International Monetary Fund program.

READ ALSO:I'll beat Mahama if he contest as President - Namoale

Mr. Mahama said the body had very stringent benchmarks such as cutting down government subventions on virtually every sector of the economy.

“Our country has come a long way since then, the international financial institutions have also come a long way since then. Kenneth Kaunda said the IMF is like a mad doctor, it can only dispense one prescription, quinine, those of you who know quinine, it is the bitterest medicine you will ever encounter on earth, and that’s all the IMF knew to do, give you quinine, so we had to cut down subsidies to everything, subsidies to healthcare, education, agriculture…but Ghana had to go through it, take the bitter pill and make some adjustments..”, he said.

READ ALSO:Nkrumah indeed founded Ghana – Mahama

He explained that these “bitter” conditions from the IMF eventually resulted in the depreciation of the cedi and the introduction of policies such as the “cash and carry” system in the health sector.

“it was in those years that the cedi was left to float, foreign exchange bureaus were introduced, forex bureaus were introduced, those were the beginnings of court sharing and the beginning of cash and carry in the health sector, you had to pay before you were given service,. It created a lot of hardship in Africa and more classes of poverty”, he stated.

The former President however added that the IMF has revised some of its policies and has introduced more flexible social protection programs including the National Health Insurance Scheme.

READ ALSO:IMF programme a “complete waste of time”: Finance Committee chair

“I must say that those final institutions have changed however, they accept that there must be strong social protection programs in any adjustment program that you are conducting and so when we started this current program in which Ghana is currently in with the IMF, one of the areas they benchmarked is how much money is going into social protection and livelihood empowerment over poverty programs”, he explained.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Poverty Gap Ghana’s policies make the rich wealthier – UNbullet
2 Job Creation Nation Builders Corps to be launched end of April - Bawumiabullet
3 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
4 Salaries In 2018 Here are the dates public workers will be paid in...bullet
5 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
6 In Upper East 2 men killed in daylight bank robberybullet
7 May I take Your Order It's ‘Chop Time’ at Achimota Mallbullet
8 SSNIT Scandal 10 SSNIT staff with fake certificates...bullet
9 Retirement How to calculate your SSNIT pensionbullet
10 Taxes In Ghana 3% VAT flat rate takes off in July 1bullet

Top Videos

1 Money Alert Meet Africa's richest womanbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
7 Support Finance minister buys Kantanka carbullet
8 Entrepreneurship How to be resourceful as an entrepreneurbullet
9 Tech 6 reasons you should buy an iPhone SE instead of...bullet

Business