He said Ghana could be destabilized if the economy keeps getting worse.
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Ghana’s current economic mess can lead to chaos – Gen. Nunoo-Mensah
Brigadier General Joseph Nunoo-Mensah (Rtd) has warned of dire repercussions if the current economic mess continues.
GENERAL-NUNOO-MENSAH
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In an interview on Joy News in Accra, General Nunoo-Mensah said the economic situation can lead to a widespread riot.
“We should observe what’s going on and take serious action, otherwise, we might have serious situation on our hands. Early next year, coming January, February and March, there will be a serious problem for us, which might lead to riots and even breakdown law and order,” he stressed on Thursday.
This week, Fitch downgraded Ghana’s credit ratings from B- to CCC with a negative view that the quality of life will deteriorate.
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“In the absence of new external financing sources, international reserves will fall close to two months of current external payments (debits in the current account) by end-2022”, it explained.
Finance Minister, Ken Ofori-Atta
Pulse Ghana
The Government of Ghana has requested support from the International Monetary Fund, which is likely to lead to additional financing from the Fund and other multilateral lenders.
However, Fitch said, “the government’s high-interest costs and structurally low revenue as a percentage of Gross Domestic Product have increased the likelihood that IMF support would necessitate some form of debt treatment, although this is not our main scenario.
“The high-interest burden on local-currency debt also means that the inclusion of a domestic debt treatment cannot be ruled out”.
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Again, Fitch believes that a deal with the IMF is likely within the next six months.
“We estimate that a programme could disburse as much as $3 billion and unlock budget support from other multilateral lenders. However, the timing of such a deal is uncertain and would be dependent on the government’s ability to present a credible fiscal reform plan in line with increasing government revenue and improving debt affordability metrics”.
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