The Minority in Parliament is cautioning Ghanaians, and government in particular, to be measured in their excitement over the country’s staff level agreement with the International Monetary Fund for a $3 billion bailout.
The Minority Leader, Haruna Iddrisu calls the excitement by the government over the deal premature.
Speaking to journalists in Parliament on Tuesday, the Minority Leader said the Finance Minister, Ken Ofori-Atta, must rather focus on securing management and board approval of the fund.
“What is important is not a staff-level agreement but a management and board approval of Ghana’s application by the IMF board, which will probably may take us to April or beyond… staff level agreement, I see them dancing and celebrating to it. It is premature,” he noted .
He added, “Our debt is still not sustainable. The debt exchange initiative of the Minister may probably fail, as many are refusing to sign onto it. The content of the external bonds is still unknown, and they are running out of time to announce haircuts associated with the external bonds.”
Harruna Iddrisu also stated that there is no need for the Finance Minister to be rejoicing after making the cedi appreciate against the dollar because the cedi was better when he became Minister than it is today.
“For the Minister for Finance to be dancing and saying, praise me because I have brought an improvement in the exchange of the cedi which was falling with some epileptics. He should ask himself at what level did he inherit the cedi against the dollar.”
The Minority Leader also demanded that the Finance Ministry brings before Parliament, its debt restructuring arrangement for approval.
“Even the debt exchange they must bring something here and lay it for the people of Ghana. The Minister of Finance cannot just walk away as if everything in this country is determined by him.
Government announced a staff-level Agreement with the International Monetary Fund for a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion on Tuesday.
Addressing the media earlier on Tuesday, the Finance Minister was upbeat about the agreement when finally approved by the IMF Board.
“Truly, the eventual conclusion of the program will assist us in our efforts to restore stability, tackle inflation, and strengthen our currency.”
