Business News of Friday, 1 July 2022
Source: www.ghanaweb.live
2022-07-01FLASHBACK: What Akufo-Addo said about going to IMF in 2015
President Nana Addo Dankwa Akufo-Addo
While in opposition, the New Patriotic Party in the lead up to the 2016 elections consistently lambasted the John Dramani Mahama administration particularly on issues bothering on the economic management of the country.
From corruption allegations to inflation issues, the NPP accused NDC of gross incompetence at managing the economy and further saddling Ghanaians with overbearing taxes.
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The party promised to move the country from taxation to production when elected as well ensuring that the economy was prudently managed to ensure Ghanaians received some respite.
Five years into its administration, however, the country has been plunged into an economic crunch with the NPP government largely blaming it on COVID-19 and the Russia Ukraine war.
A leading member of the NPP, Gabby Asare Otchere-Darko, earlier this week hinted at an IMF programme as the E-Levy tax measure was failing to meet estimated revenue inflows.
He stated in a June 27, 2022 tweet: “I am not for an IMF program that throws peanuts at us but imposes conditions that will end up hurting the poor, jobs and businesses more. COVID-19 and War in Ukraine are not of Africa’s doing but more to our doom.”
“Am I against an IMF program in principle? No,” he added.
But what did President Nana Akufo-Addo say about going to IMF?
President Akufo-Addo in 2015 lampooned the NDC government lamenting why an oil rich country like Ghana was heading for an IMF bailout.
“For the first time in #history, an oil rich country, some five years into oil production, is seeking a #bailout from the #IMF,” he tweeted on April 19, 2015
In early 2015, Ghana turned to the IMF for a US$918 million loan to help stabilize the economy.
IMF advisors, working with the Ghanaian government under former President John Dramani Mahama, developed a three-part program: Restore debt sustainability, Strengthen monetary policy, and cleaning up the banking system.
The government limited hiring and wage increases and eliminated subsidies for utilities and petroleum products.
Meanwhile, it is has become clear the NPP government will seek an IMF bailout, however, Finance Minister Ken Ofori-Atta prior to the passage of the E-Levy indicated government’s strong resolve not to return to the Bretton Woods organization.
See Akufo-Addo's tweet about a return to IMF in 2015
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