Ghana’s economic stability hinges on IMF, World Bank loans, says Parliament’s Finance Committee Chairman
The Chairman of the Finance Committee of Parliament, Kweku Kwarteng, has emphasized the critical need for borrowing from international financial institutions such as the International Monetary Fund (IMF) and World Bank to stabilize the nation’s economy.
In an interview on PM Express, Mr. Kwarteng highlighted the urgency for cheaper external funding sources, particularly as Ghana faces constraints in accessing the Eurobond market under the IMF programme.
“Nobody is lending to Ghana now. This is because of the debt restructuring and freeze. These funds coming to Ghana now under the IMF programme can be described as a major source of foreign exchange for the economy,” he said.
“Looking at our current situation, we badly need these support from the World Bank and IMF to help stabilize the economy. If we want to avoid the long queues at the fuel stations, and ensure that essential medicine are not affected, then these facilities coming from the World Bank under the IMF programme should be encouraged”, he added.
Against a backdrop of rising expenditure and revenue challenges, Mr. Kwarteng articulated concerns regarding budget overruns and deficits that have contributed to Ghana’s current debt crisis. He stressed the necessity for stringent measures to address these fiscal imbalances, cautioning that continued unapproved spending could jeopardize the country’s economic stability.
Addressing revenue collection, Mr. Kwarteng called for collective efforts to improve the mobilization of funds and advocated for comprehensive reforms in tax exemption policies to prevent discrimination and potential corruption.
In light of these challenges, Mr. Kwarteng justified the recent debt exchange programme as a necessary action in response to Ghana’s economic circumstances. He urged policymakers to navigate these fiscal challenges diligently to avert potential pitfalls that could lead Ghana into a state of financial distress.
