Prof Quartey predicts Ghana could get an IMF bailout by June

 Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey has said he is cautiously optimistic that Ghana would close the deal with the International Monetary Fund (IMF) by June this year.

He told TV3 on the sidelines of a forum held by ISSER on Thursday, May 4 that Ghana’s external creditors such as China have a big role to play in whether or not the country would secure the deal.

“All things being equal, the plan was to have this in March, but you know the external creditors have a big stake, China especially, have a big stake in whether this programme will come on or not. I am cautiously optimistic that by June we should have the programme running,” Prof Quartey said.

The Minority Leader Dr Cassiel Ato Forson earlier made similar remarks that Ghana would not reach an agreement with the Fund by the end of May as predicted by the Finance Minister Ken Ofori-Atta.

In his view, the earliest Ghana could close the deal is July-August.

Speaking in an interview on TV3, the Ejumako Enyan Essiam lawmaker said “You notice that Ghana is still struggling to get an IMF programme, the President came to Parliament to promise us that he is going to get us a deal by March, I said that it is not going to happen, March is gone, April is gone, we are now in May.

“I can confirm to you that it is not going to happen by end of May, it is not going to happen, I will urge our Minister responsible for Finance to be truthful to the people of Ghana and be candid enough to say that yes, the timelines that we have, we said A,B and C but we cannot make it. The earliest is beginning 3rd Quarter, July August , that is the earliest.”

It is recalled that the Finance Minister Mr Ofori-Atta said the government expected the Fund’s board approval of the deal by May this year.

He told the investors on the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington, D.C. USA on Thursday, April 13 that “We do at this time expect an IMF board approval in May and contemplate a rapid negotiation of a Memorandum of Understanding (MoU) with our creditors. We have made significant efforts on all fronts.”

He further assured the investors that the government had taken a number of steps to ensure that the challenges with the nation’s finances are tackled.

He told the investors on the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington, D.C. USA that the country is undergoing debt restructuring as part of efforts to secure a deal with the International Monetary Fund (IMF).

He said “Ghana has done a number of things, first of all with regards to the Paris Club, we did travel to China, we sort support from India and the Saudis and really maintained open relations with the Club.

“We did get to the Club to let them know that we were worried about the track record of the common framework, we have had a good relationship, we really commend the Paris Club for the sense of urgency that they have and we are confident that they will be able to bring the assurances to the Bank in the coming week.”

He also indicated that Government intends to deepen the relationship with its external creditors.

“We reaffirm our commitment to work with our private and commercial creditors in all of our engagements,” he stressed.

Source: 3news.com