Nana Addo’s government must renegotiate IMF deal - Economist

15:55 - 15 December 2016

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The IMF deal is to help restore debt sustainability and macroeconomic stability in the country.

An economist Dr Adu Sarkodie has indicated that the president-elect Nana Akufo-Addo would have to renegotiate Ghana’s IMF deal if he assumes office as president.

He argues that a renegotiation will save the country from further debt.

“We must renegotiate certain parts of the IMF deal. One of the items that have contributed to the slow effectiveness of the program is that they have front loaded the policies and programs and have kept the money. So, in other words, I go into a deal with you, I expect you to take certain good steps before I hand you the money but it has not been the case in the previous IMF programs.”

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“So I think that this time round the IMF should rather front load the money. They should frontload about 70% of the remaining 50% for us to stabilise because the macroeconomic stability is the most important thing,” he added.

Ghana’s three-year agreement with the IMF which will see the disbursement of a total of 918 million dollars (USD 918,000,000), was approved on April 3, 2015.

Dr Adu Sarkodie, however, cautioned the incoming administration to be cautious of some economic fundamentals in order to propel economic growth.

“If we are not vigilant and the exchange rate gets out of hand, it is going to multiply the external debt. Right now what we need to do is research our debt and grow our economy,” he concluded.

Ghana has so far received a total of about US$464.6 million as disbursements from the IMF.