Associate Professor of Development Economics at the University of Ghana, Professor Ebo Turkson, has said without successful implementation of the debt restructuring program, there will be no funds from the IMF.
His comment comes on the back of Ghana reaching a staff-level agreement with the IMF on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.
The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.
Commenting on the development on Starr Today with Joshua Kodjo Mensah Tuesday, Prof. Ebo Turkson appealed to investors and the general public to support the implementation of the debt restructuring program to enable government secure the IMF funds.
“If the board doesn’t approve of the reform then we will not get the support and that is just straightforward. Because it’s a major component of the reform at this level. So if we are not able to conclude the other side of the bargain in terms of the investors to agree then it’s not going to come off.
“We need to be aware and it should be made clear that we need this IMF program to get our economy back on track. So it is important that as both the government and investors negotiate, we all have to make sacrifices,” he stated.
He further explained all things being equal if authorities are able to fulfill their part of the bargain then the loan from the Washington-based lender might be released in February.
“In the best case scenario if we are able to complete the debt restructuring, not only the domestics, don’t forget there is the external debt restructuring that is coming off. Once we are able to conclude that as soon as possible and the Ghana budget is accepted by Parliament, we conclude the Appropriations and all of that, then it means that the reforms that we sought to do in the budget is approved, then most likely by the end of January we are expecting the board to approve the deal on the basis of what has happened from the staff level agreement. It will be affected and the board will give the go ahead. Then in February, we should be expecting the loan”.