IMF Deal: ‘Why would a new one work if the Previous Programmes Failed?’ – Hanke asks

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A Johns Hopkins Professor Steve Hanke is doubting whether the recently-approved $3 billion programme by the International Monetary Fund (IMF) for Ghana will achieve the desired results.

He says his doubts come on the back of the failure of the previous programmes Ghana got from the Fund.

“Today, I measured inflation for #Ghana at 50%/yr. Another IMF program won’t save Ghana. After all, all of Ghana’s past IMF programmes have failed. Why would a new one work?” he tweeted.

Meanwhile, the IMF Mission Chief for Ghana Stéphane Roudet, has said that the programme will result in reforms in the energy and cocoa sectors.

Also, he said the programme would result in reforms to encourage private sector investments and also build international reserves.

“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference in Washington on Thursday, May 18.

“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.

For his part, Finance Minister Ken Ofori-Atta thanked the Fund for the support.

He said “We are already seeing relative stability in the currency and inflation and revitalizing our economy. Government with support from the IMF and collective effort with Ghanaians will work through our current challenges and emerge stronger.”

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.


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