Declare an emergency due to the financial crisis – Pianim

Renowned economist Kwame Pianim has told President Nana Addo Dankwa Akufo-Addo to as a matter of urgency declare a state of emergency over the current economic crisis.

In his view, this will form a major step in tackling the crisis.

Speaking with 3business on News 360 on TV3 Thursday, June 1, in relation to the $ 3 billion deal approved by the International Monetary Fund (IMF), he said “Now we have to put all our cards on the table, tell Ghanaians we are in a deep crisis.

“Those are the words that the IMF uses, we are in a deep crisis and to solve the deep crisis and get out we have to be serious, declare a state of emergency and tell every Ghanaian we all have to tighten our belts, we are in economic crisis.

“Some of the symbolic cutting will show that we are reducing the size of government to make it lean and smart and that expenditures that are not going to yield output they are going to suspend them.”

President Akufo-Addo earlier told Ghanaians not to expect that the IMF programme will not end Ghana’s problems.

President Akufo-Addo in his address to the nation on Sunday, May 28, said “Access to the IMF facility will not spell the immediate end of the difficulties we are in presently.

“But the fact that we’ve been able to negotiate such a deal sends a positive message to our creditors and investors.”

He added “It should lead to the restoration of confidence and the reopening of avenues that have been closed to us this past year and a half.”

A similar comment was earlier made by his Finance Minister Ken Ofori-Atta who warned that the approval of Ghana’s request for bailout would not offer a magic solution to the current economic crisis.

“Ghana’s IMF Board approval is far from a magic solution,” Mr Ofori-Atta stressed.

“What it is, however, is that it is a crucial first step on the necessary journey of strong reforms, inclusive growth and relentless pursuit of a growth agenda geared towards restoring our economy to a place of strength, prosperity and resilience.”