Economist warns gov’t: IMF bailout alone won’t save us; cut down on expenditure

An Economist Prof. Lord Mensah says the $3 billion bailout from the International Monetary Fund (IMF) will fail if government still refuses to make some cuts in its expenditure.

Government sought an IMF intervention to help restore the economy as the country battles its worst economic crisis in decades.

On December 5, 2022, the government launched a domestic debt exchange programme which is part of a key requirement for the government to obtain an economic programme from the International Monetary Fund.

Holders of approximately GH¢137.3 billion of principal amount outstanding of certain domestic notes and bonds issued by the Government were invited to exchange their Eligible Bonds for a package of new bonds to be issued by the Government.

Speaking to Citi News on the issue, Prof. Lord Mensah said the IMF intervention will be fruitless less government agrees to make some cuts.

“Government should look at what they are also going to sacrifice. We cannot stick to the same structures that got us into the economic mess we found ourselves in. If the government wants one party to sacrifice, the issue will be what are they [government] also sacrificing?”

“We recommend that government at least changes the governance structure, ad remove some offices to ensure that we cut cost.