Ghana will suffer a lot if IMF deal does not go through- Economist

An Economist and Policy Analyst, Appiah Kusi Adomako says Ghana will suffer serious consequences if the International Monetary Fund (IMF) deal with Ghana does not go through.

According to him, going to the IMF was not just about the money, saying that the $3 Billion bailout is not enough for a country like Ghana.

Rather, he said aside the money, the IMF Deal will also gives the country some level of policy credibility so that those that will trade with the country will have confidence in it.

Aside from that, he said it also reduces the country’s risk profile.

Read Also: IMF: Ghana wouldn’t have been here if Covid-19 funds were well managed – Economist

Appiah Kusi Adomako made the comments at a forum dubbed,’Can Ghana Survive a no IMF Deal’, on Atinka TV‘s morning show, Ghana Nie with Ama Gyenfa Ofosu Darkwa.

He recalled that the Finance Minister, Mr Ken Ofori Atta stated that if the IMF deal did not go through by March, the Ghanaian economy would crash.

He underscored the need to listen to the Vice President, saying that Ghana surely needs the IMF Deal.

Appiah Kusi Adomako said if the IMF does not approve Ghana’s programme, it will be a worry because it is going create panic.

He said the cedi will depreciate again.

In addition, the Economist said foreigners who have bought Government of Ghana bonds will withdraw their investment and change their cedis into dollars and take it out.

“We might even have a commodity crisis because everybody has conditioned his or her mind that IMF is coming, because if you are expecting an artist at an event and he does not show up, the people will leave and so we do not wish it happens, because if it happens, it will be very difficult. You cannot go anywhere for loans except the IMF and so if IMF says they will not give you, then it will be very serious for the country,” he said.

In the meantime, he stated that Ghana can manage without borrowing, but not at this time, and that if Ghana decides to stop borrowing, it must implement a number of measures.

Ghana| Atinkaonline.com| Porcia Oforiwaa Ofori