A former Minister of Finance, Seth Terkper has advised the government to be transparent in its ongoing discussions with the International Monetary Fund (IMF).
Mr. Terkper said the government’s openness about Ghana’s debt situation will enable both parties to devise measures that will tackle the fiscal and structural challenges that compelled the country to turn to the IMF for support.
“The IMF has been complaining already about the lack of transparency, so I think if we want to make progress, we need to be very open so we know the depth of the problems.”
This will be the 17th time Ghana is going to the IMF for help.
The move came after the Akufo-Addo government’s controversial revenue generation policy, the electronic transfer levy, failed to generate the needed revenue targets.
Proffering suggestions for improving Ghana’s fiscal situation, Mr. Terkper advised the government to drift Ghana’s budget from “one-time bonds”
“In 2020, we had the covid loan and the Bank of Ghana to cover up. Nearly 6 billion flowed into the economy but we still had challenges. If we are concerned about ratings we must move the budget away from one-time bonds that go into consumption,” he said on Citi FM and Citi TV’s news analysis programme, The Big Issue.
Ghana’s economy is in distress as it currently has a total public debt stock of GH¢391.9 billion, as of the end of the first quarter of 2022.
The cedi is also the worst-performing African currency, having weakened 22 percent against the dollar this year.