Bawumia explains why Ghana is back to the IMF
Few days after Ghana has engaged the International Monetary Fund(IMF) for bailout, the Vice President of Ghana, Dr Mahamudu Bawumia, has taken his stance to address some Ghanaians on the country’s decision to take that trajectory for economic assistance.
While delivering a speech at the Accra Business School on Thursday, July 14, 2022 the Vice president, noted that the energy sector excess capacity payments, the banking sector clean-up, the novel COVID-19 pandemic and the Russia-Ukraine war triggered the IMF bailout.
He said “Covid-19 expenditures alone were not the reasons for the large increase in Ghana’s debt stock by the end of 2021. If you take out the fiscal impact of this quadruple whammy, Ghana will not be going to the IMF for support because our fiscal, debt, and balance of payments outlook would be sustainable.
The vice president added that “Of the four factors, two (COVID-19 and the Russia-Ukraine war) were external and the other two (the banking sector clean-up and the excess capacity payments) were the result of policies of the previous government”.
Below is the full speech.
