Finance expert, Dr Williams Peprah, has described the announcement by the Managing Director of the International Monetary Fund, Kristalina Georgiva, as timely as it will ensure Ghana gets a programme before the end of the year and boost to investor confidence.
According to him, it would also help slow down the depreciation of the cedi and the rising inflation.
DrPeprah who is an Associate Professor with Andrews University in Michigan, USA, told Joy Business the announcement would come as a huge relief to the economy which had come under pressure in recent times.
“This announcement is coming at an important time and the inflows will also come at an appropriate time to support the country’s balance of payments. If we look at our country and our cash flow situation, the government is likely to get an inflow from the cocoa syndicated loan which could take Ghana through the situation up till December 2022,” he said.
The IMF bosson Monday, reiterated her outfit’s commitment to reaching agreement with the government by the end of this year for an economic programme.
Speaking with Joy News’s Benjamin Akakpo at the Africa Adaptation Summit in Rotterdam, Holland, Madam Georgiva said the present economic imbalances is not due to bad policies by the government.
According to her, Ghana’s current economic woes was not a self-inflicted one but exogenous shocks such as COVID-19 and the Russian/Ukraine war.
DrPeprah explained that the financial support from the IMF would improve the Ghanaian economy significantly.
According to him, the perennial pressure of the cedi in the first quarter of every year, as a result of repatriation of profits of multinational firms would ease significantly due to the implementation of the economic programme by that period.
“During the first quarter of 2023, there will be a lot of pressure from international institutions in Ghana that will be repatriating their profits out of the country. So the IMF money will help in stabilising the currency situation and slow down the cedi’s depreciation,” he said.
She also pointed out that discussions between Ghana and the Fund had been progressing steadily.
“We have to support Ghana because your strength contributes to the strength of your neighbours, it contributes to a stronger world”.
By Dr Peprah