Govt’s decision to seek IMF bailout late but welcoming – Mahama

Former President John Mahama has welcomed the government’s decision to begin engagements with the International Monetary Fund for a bailout programme to help revive the economy, although he says the decision was taken a little too late.

In a statement, Mahama said the announcement by the government is important to help address the many challenges that have plagued the Ghanaian economy.

He however said the government must develop a more impactful home-grown programme that will complement the IMF programme that will be agreed upon after negotiations.

“I welcome President Akufo-Addo’s decision to formally engage the IMF with the view to entering into a programme under the Fund. Though belated, it should mark an important step towards addressing the dire economic situation, which has left Ghanaians wallowing under intense suffering and hardships,” he said.

The Ministry of Information on Friday, July 1, 2022, announced that President Akufo-Addo had given approval for Ghana to begin engagements with the IMF for a bailout.

The statement added that the Minister for Finance, Ken Ofori-Atta will be leading the negotiations with the IMF but John Mahama in his statement said the minister must not be allowed to be part of the team of negotiators.

“He has lost credibility and the trust and confidence of stakeholders in our economy. President Akufo-Addo must take a bold decision to replace his finance minister immediately with a more assured and competent person who is willing and able to work tirelessly to turn our almost hopeless situation around,” Mahama indicated.

He further reiterated his earlier call for Vice President Mahamudu Bawumia to be removed from his post as the chairman of the economic management team “given his obvious failures.”

Read Mahama’s full statement below:

I welcome President Akufo-Addo’s decision to formally engage the IMF with the view to entering into a programme under the Fund.

Though belated, it should mark an important step towards addressing the dire economic situation, which has left Ghanaians wallowing under intense suffering and hardships.

Beyond the announcement of engagement with the IMF, a comprehensive home-grown programme should be fashioned out and presented to the Fund for support. It is imperative that a team of skilled and competent negotiators is put together to obtain the best set of measures with the Fund.

The Finance Minister who has supervised the disastrous collapse of the economy cannot and should not be part of the team of negotiators. He has lost credibility and the trust and confidence of stakeholders in our economy.

President Akufo-Addo must take a bold decision to replace his finance minister immediately with a more assured and competent person who is willing and able to work tirelessly to turn our almost hopeless situation around.

In addition, given his obvious failures, the Vice President must be relieved of his responsibility as Chair of the Economic Management Team to enable the President to reconstitute the team.

We must draw useful lessons from this episode and avoid cheap politicking with the economy; that can only yield the disastrous outcomes that have brought us here.