Cedi fall: IMF programme to be derailed by end of year – Ato Forson

Dr Cassiel Ato Forson, the Minority Leader in Parliament, has expressed concerns over the government’s handling of the Ghanaian cedi, predicting it could lead to the derailment of the International Monetary Fund (IMF) programme by the end of the year.

Dr Forson criticised the government’s fiscal policies, suggesting that the actions taken to stabilise the national currency are insufficient and may have adverse effects on the economy.

The minority caucus on Wednesday, May 15, raised concerns over the government’s recent borrowing of GH¢7 billion from the treasury bills market to compensate contractors outside of its budgetary allocations.

According to the Minority, this practice of extending expenditure beyond the budget for political purposes is exacerbating the depreciation of the Cedi against the dollar.

 

Speaking to Bernard Avle on the Citi Breakfast Show on Thursday, the minority leader noted that the current trajectory indicates a potential setback for the IMF programme, which was initially on track.

“Let me be honest with you, this programme is certainly going to be derailed by the end of this year and it is going to take a while. I have no doubt about that… let’s wait and see. It is actually on the back of the fiscal,” he stated.

Dr Ato Forson further explained that the next IMF review, which will guarantee the release of the third tranche of the 3 billion External Credit Facility, would rely on outdated data from the previous year, which does not reflect the current economic situation

“They were on course but as you know the review dates back. So, the next review is going to use the data as of December last year. So the programme indicators to check whether the programme is performing or not is going to use data six months before the time of review.

“So, obviously six months before it was good. But I can tell you that based on the data and the way they are conducting the affairs of the policy going forward, there is going to be a complete commotion,” he stated.