Senyo Hosi applauds Seth Terkper’s fiscal discipline during previous IMF programme
In a recent interview, Senyo Hosi, the convenor of the Independent Bondholders Forum, commended former Finance Minister Seth Terkper for his principled stance on national borrowing and expenditure during his tenure from 2012 to 2016 under the John Mahama administration. Mr. Hosi criticized the current Akufo-Addo administration for failing to make productive use of the significant amount of money borrowed since assuming office in 2017. He expressed misgivings about the government’s reluctance to rein in its expenditure and suggested that there is a lot to learn from Mr. Terkper’s approach to borrowing and expenditure, which he referred to as “smart borrowing.”
The Independent Bondholders Forum convener went on to urge the Ghanaian business and political elite to take a more active role in the nation’s economic management and hold the government accountable. He stated that the current economic crisis, which has compelled the government to seek help from the International Monetary Fund, should serve as a wakeup call to all Ghanaians, especially the business and political elite, to work together to turn the economy around.
Mr. Hosi further emphasized the need for the business and political elite to play a more active role in the nation’s economic management. He urged them to hold the government accountable and cited the current economic crisis as an opportunity for Ghanaians to work together to turn the economy around. He called on the Ghanaian middle class and elite to look beyond their individual interests and take a long-term view of the nation’s economic development.
During the interview, Mr. Hosi also paid homage to former Finance Minister Seth Terkper. He commended Terkper’s professional and principled approach to borrowing and expenditure, which he believes has been vindicated in the current economic crisis. Mr. Hosi recalled that during Terkper’s tenure, he was quite adamant about fiscal consolidation and warned that business would not be as usual. He got into trouble with many of his colleagues in cabinet, but he was doing what was professional and what was right.
Mr. Hosi’s comments on Ghana’s current economic situation reflect growing concerns about the country’s economic management. Ghana has been grappling with a rising debt burden and budget deficits in recent years. The COVID-19 pandemic has worsened the situation, leading to a sharp drop in revenue and increased government spending on social support programs.
The government has responded by implementing several austerity measures, including a Domestic Debt Exchange Programme. However, Mr. Hosi believes that the government’s reluctance to rein in its expenditure is a cause for concern. He urged the government to take the fiscal actions that are required to turn the economy around.
Mr. Hosi’s comments highlight the need for a concerted effort by all Ghanaians to turn the economy around. He calls on the business and political elite to play a more active role in the nation’s economic management and hold the government accountable. He believes that there is much to learn from former Finance Minister Seth Terkper’s approach to borrowing and expenditure, which he refers to as “smart borrowing.” Ghana’s current economic crisis presents an opportunity for Ghanaians to work together to build a more sustainable and prosperous economy for the future.
