Franklin Cudjoe, President of Imani Africa, has advised the Akufo-Addo to seek assistance from the International Monetary Fund (IMF), advising that the Government should overcome its shyness and approach the IMF for assistance in halting the massive borrowing.
His advice comes in the wake of a downgrade by Fitch and warnings from credible organizations and economists that the economy is in grave danger of collapsing.
“We all experience difficult times and rely on family and friends for support…but the government has driven the country into a debt iceberg, and we are sinking with fewer lifeboats. And passing ships that ought to be concerned simply smile and wave at us. We must halt the debt clock by rationalizing our spending plans, among other things. Meanwhile, the government should seek assistance from the IMF. Mr Cudjoe admonished, “We should not be timid at all.”
“Ghana’s dollar bonds have fallen 10% in ten days, pushing the country deeper into distressed territory as investors conclude that refinancing debt in the Eurobond market will be impossible as the Federal Reserve hikes rates and fiscal targets remain elusive.
The premium on Ghana’s sovereign dollar debt increased to an average 1,105 basis points on Wednesday, up from 683 basis points in September. Ghana’s economy, according to Bloomberg, had the worst start to the year among emerging markets, extending last year’s 14% loss,” Bloomberg said of the Ghanaian economy.
Meanwhile, the government, through the Ministry of Finance, has stated that, contrary to predictions, the Ghanaian economy’s fundamentals are strong enough to withstand current challenges._
Source: TheBBCghana.Com
