IMF deal: African leaders have proven incapable of managing their own affairs – Lumumba
Prominent Pan Africanist, Professor of African Law and Founder of the PLOLumumba Foundation, Patrick Loch Otieno Lumumba, is concerned about the decision of African leaders to continue asking for help from the Bretton Woods Institution, the International Monetary Fund (IMF) and the World Bank.
He said that the officials of the institution were sitting down, he said that African leaders could not manage their affairs properly.
“When we sit in the IMF and the World Bank or the European Union when Africans are not there, what they say is that we say that they cannot manage their affairs,” Prof Lumumba told Alfred Ocansey on TV3 in a program that has not yet ended. aired an interview on the Ghana Tonight show on Thursday Febraoury23.
Ghana is now seeking to close a deal with the IMF so that the oil-producing West African nation can overcome its economic challenges.
The State and the Fund have reached staff-level agreement on the new program.
IMF Managing Director Kristalina Georgieva said she was pleased with the progress Ghana had made in bringing the staff-level agreement to the Council.
He said the IMF was supportive Ghana’s efforts to stabilize the economy and promote an inclusive recovery.
In a tweet, he said “Great to meet you President @NAkufoAddo at #MSC2023. Great to hear the authorities are making progress on bringing staff-level approval to the IMF Exec. Space. We support Ghana’s efforts to stabilize the economy & promote an inclusive recovery.
Nice to meet you
– Kristalina Georgieva (@KGeorgieva) February 17, 2023
Staff-level agreement with Ghana for a three-year program supported by arrangements under the Extended Credit Facility (ECF) for approximately $3 billion.
Approval by the IMF’s management and the Executive Board in the future depends on receiving funding guarantees from Ghana’s partners and creditors, the IMF boss said while answering questions in the Frequently Asked Questions about Ghana.
The goal of the government’s economic program is to restore macroeconomic stability and debt sustainability while protecting the vulnerable, maintaining financial stability, and laying the foundations for a strong and inclusive recovery.
To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation.
As part of efforts to reach a deal, Finance Minister Ken Ofori-Atta briefed Parliament on the situation regarding the Domestic Debt Exchange Program (DDEP).
He called on the members of parliament to support the government to get the approval of the board of the IMF to ensure the stability of the economy.
Mr. Ofori-Atta told the House on Thursday, February 16 that the IMF deal will help Ghana quickly recover from economic challenges.
“We will recover from this crisis sooner rather than later as shown by President Akufo-Addo.
“I will urge Members of Parliament to support the government in securing the approval of the council for macro stability.”
Ghana’s fiscal and debt vulnerabilities are increasing rapidly in an increasingly challenging external environment. During the COVID-19 pandemic, Ghana’s public debt has increased.
At the same time, the government’s efforts to maintain debt sustainability were not seen as sufficient by investors, leading to a downgrade in credit ratings, the exit of non-resident investors from the domestic bond market, and ultimately Ghana’s loss of access to international capital markets.
Adverse developments, the IMF noted, worsened by price and supply chain shocks from the war in Ukraine, have led to a large depreciation of the exchange rate, increased inflation (40.4 percent annually in October) and pressure on foreign exchange. reserve. Against this background, the government requested assistance from the IMF at the beginning of the summer and a staff-level agreement was reached in December 2022.
The program will support Ghana to implement policies that restore macroeconomic stability and ensure debt sustainability while protecting the most vulnerable sections of the population.
It will help create conditions for inclusive and sustainable growth and job creation. The program will also help reduce exchange rate pressure and provide a catalytic effect on additional funding sources, the Fund said.
By Laud Nartey|3news.com|Ghana
Read the Full Story
Advertise Here contact advertisement[@]ghheadlines.com