Prof. Lord Mensah expresses concern over delayed IMF programme for Ghana
Ghana’s economic outlook has been the subject of recent concern, as the country’s government grapples with debt restructuring and securing an International Monetary Fund (IMF) programme.
Professor Lord Mensah has described the situation as “terrible,” citing uncertainty around management information and a lack of appreciation for the complexity of the situation on the part of the Finance Minister and his team.
Speaking in an interview on Friday, Prof. Mensah expressed his concerns over the delay in securing an IMF programme, noting that the market relies on management information and that uncertainty only serves to create more problems. He cited a recent article in the Financial Times which suggested that Ghana may not receive a debt restructuring soon, drawing comparisons with Zambia, which spent over two and a half years in debt restructuring limbo before defaulting.
Ghana’s President, Nana Akufo-Addo, had earlier disclosed that the IMF staff would present Ghana’s request for a loan programme to its executive board by the end of March. Similarly, Finance Minister Ken Ofori-Atta had stated that the government was hoping to secure IMF Board approval by March 2023, an assertion he made on PM Express, Business Edition with host George Wiafe.
However, the March deadline passed without a deal, leading to concerns over the country’s economic stability. Ofori-Atta addressed Euro Bondholders at an Investors Presentation Forum on Thursday, stating that Ghana should expect an IMF Board approval for a programme by the end of May 2023, citing significant progress made by the country.
Despite this, Prof. Mensah remained skeptical, noting that verbal commitments from creditors were not enough to determine a reliable timeline for securing an IMF bailout. He went on to suggest that the country would not be able to secure an IMF programme until the end of the first quarter, adding to concerns over the ongoing debt restructuring and economic downturn.
Ghana’s economic outlook remains uncertain, with the country’s government facing ongoing challenges in securing an IMF programme and managing its debt restructuring. The situation is complicated further by the complexity of the situation, as noted by Mensah, and the lack of clarity around the timeline for securing a bailout. As the country continues to navigate these challenges, it remains to be seen what the future holds for Ghana’s economy and its people.
