Economist predicts tougher yuletide; asks gov’t for economy downgrade for concessional loans

The Dean of the School of Economics at the University of Cape Coast, Prof. James Atta Peprah says Ghanaians should brace themselves for a tough Christmas this year.

A Ghanaian delegation from the Ministry of Finance and the Bank of Ghana returned from yet another round of negotiations with the International Monetary Fund (IMF) over the weekend towards a Fund-supported programme.

In a statement, the Ministry said officials from the IMF Misson Team are expected back in Accra in the coming weeks.

Comparing the IMF bail-out to insulin for diabetic patients, Prof. Atta Peprah said the economic climate will remain tough towards Christmas, as Ghana may not receive the expected $3 billion bailout.

“Ghanaians should expect worse situations than this as we approach Christmas because, from the look of things, I am not too sure that, we are going to get the money from the IMF. The agreement has not been finalized yet, negotiations are ongoing, so you can imagine what to expect at the end of December and the start of January 2023.”

Prof. Atta Peprah further suggested Ghana downgrades its economy in order to access concessional loans, which are cheaper options.

“Sri Lanka’s economy has been downgraded so that they can access concessional loans. If you are a middle-income country, you cannot access concessional loans, so I am asking myself, can Ghana downgrade the economy because, in principle, we have been downgraded already. Concessional loans are cheaper, and the conditions there are far flexible than extended credit facilities.”