Terkper: Bretton Wood institutions gave enough warning on Ghana’s economy
Former Finance Minister Seth Terkper has come to the defense of the International Monetary Fund (IMF) and the World Bank, amidst criticism from some quarters over their warnings about the poor fiscal state of the Ghanaian economy.
In a tweet, Terkper stated that both institutions had given enough warning in their reports and advised the government to take action to avoid a debt crisis.
The IMF, in its 2019 Article IV review, had warned the government about the rising debt and budget deficit and advised it to bring it to a sustainable level.
The World Bank President, in 2020, also urged the country to join the G20 Covid-19 Debt Service Suspension Initiative.
Despite these warnings, the government failed to take action, leading to the current economic challenges faced by the country.
Terkper called for national consensus on the matter of debt exchange, saying that the situation will worsen without it.
He emphasized the importance of the government leading the effort and having the support of institutions such as the IMF, World Bank, and African Development Bank.
The former finance minister’s comments come at a time when the country is struggling with its worst economic crisis in generations and seeking investment in its oil and gas sector.
The need for a national consensus on the matter of debt exchange and the support of international institutions has never been more pressing.
