Mahama okays IMF bailout …insists Ofori-Atta should not lead negotiations

Former President John Mahama has said he welcomes the decision of Government to fall on the International Monetary Fund (IMF) to bailout the country from economic stagnation but has suggested strongly the talks should not be led by Finance Minister Ken Ofori-Atta.

Meanwhile, a team from the IMF will arrive in Ghana within the next 48-hours – Wednesday 6 July 2022- to commence negotiations and from all indications, Finance Minister Ofori-Atta is still captaining Ghana’s economic team.

Mr. Mahama, in a statement issued over the weekend said the decision to officially engage the IMF “though belated, it should mark an important step towards addressing the dire economic situation, which has left Ghanaians wallowing under intense suffering and hardships.”

John Mahama was emphatic in the statement that : “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”, Mr. Mahama added.

He said 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.

In response to the official announcement by Government, resident representative of the IMF in Ghana, Albert Touna-Mama,  has confirmed  the Fund’s readiness to assist the country.

“The IMF stands ready to assist Ghana to restore macroeconomics stability; safeguard debt sustainability; promote inclusive and sustainable growth; and face the impact of the war in Ukraine and the lingering pandemic

“We are looking forward to meeting with the authorities in the coming weeks to start the initial discussions” Albert Touna-Mama tweeted.

Mixed reactions mostly split on partisan lines has enveloped Government’s very recent announcement it would be falling on the IMF for a bailout.

Some have argued it is evidence of a failed Government while some have said it has become an unavoidable bitter bill caused by the global financial crisis, ripples of COVID-19  and the pangs of Russia’s attacks on Ukraine.

Proponents of the IMF engagement, including lawyer Gabby Asare Otchere-Darko, of the Danquah Institute  fame for instance have insisted the external factors leading to economic challenges should be blamed.

“We are facing fiscal challenges now. It is not peculiar to Ghana but our case has been made worse by the weaknesses we had in our system historically. Nobody wanted to go to IMF; John Mahama didn’t want to go to IMF in 2015. Ghana didn’t want to go to IMF but we are a member of it and if we need that risk pipe to help us get back on track let’s take full advantage of it. But let’s also understand that we have in office a government and a group of people that have a history of giving us solutions,” Mr Otchere-Darko said on Saturday during an interview with Joy FM.