FLASHBACK: No turning back to IMF, we’re on the right path – Ofori-Atta

In May, 2022, Finance Minister, Ken Ofori-Atta, reiterated government’s stance on going to the International Monetary Fund (IMF) for financial assistance.

According to him, government was committed to not returning to the IMF because interventions and policies had been put in place to ensure sufficient macroeconomic gains for the local economy to bounce back on track.

However, barely two months after this comment, President Nana Addo Dankwa Akufo-Addo has authorized the Finance Minister, Ken Ofori-Atta to commence formal engagements with the International Monetary Fund.

According to a statement issued by the Ministry of Information, this is to invite the Fund to support an economic programme put together by the government of Ghana.

Below is a flashback of what Ken Ofor-Atta said with regards to going back to the IMF programme

FLASHBACK: No turning back to IMF, we’re on the right path – Ofori-Atta

Finance Minister, Ken Ofori-Atta, has reiterated government’s stance on going to the International Monetary Fund (IMF) for financial assistance.

According to him, government is committed to not returning to the IMF because interventions and policies have been put in place to ensure sufficient macroeconomic gains for the local economy to bounce back on track.

Ken Ofori-Atta indicated that the IMF is aware that the Ghanaian economy is heading in the right direction.

He however called on Ghanaians to help government find alternative ways of financing the country’s growing debt.

Speaking at a press conference in Accra on Thursday, May 12, 2022, Ken Ofori-Atta said, “We are members of the fund; there are two major points of interventions that we have from the fund. One being the advise that we get because of the phenomenal expertise that the fund has and then secondly, these programme interventions which bring us some resources…I think, if you see from the budget that we constructed for 2022 and the subsequent announcement that we have done, clearly, the issue of Ghana having the capacity to think through the consolidation exercise exist. Also discipline itself with regards to the 20 per cent, etc, that we have shown clearly.”

“We have committed to not going back to the fund because in terms of the interventions and policy we are right there, the fund knows that we are completely in the right direction. The issue is, validating the programmes that we have put in place and then, in my view, supporting us to find alternative ways of financing or re-financing our debt, reprofiling it,” the finance minister added.

Government has instituted some home-grown solutions including the introduction of the E-Levy to stop the economy from wobbling.

The E-Levy imposes a 1.5% charge on all electronic transfers above GH¢100.

The tax policy is a move by the goverment to widen the country’s tax net.