A former Deputy Minister of Finance, Dr Cassiel Ato Forson, has urged the government to run to the International Monetary Fund (IMF) for urgent debt relief owing to the rising debt incurred over the last four years.
He said IMF has made available a HIPC-like initiative, which could rescue Ghana from being highly debt-distressed.
Addressing an audience at the University of Professional Studies, Accra (UPSA) on a Policy Dialogue on Monday, July 26, the Ranking Member of the Finance Committee predicted that the country will be plunged into unsustainable financial distress by February 2023 if his suggestion is not heeded to.
“The Akufo-Addo-Bawumia government must seek urgent debt relief from the International Monetary Fund through the newly proposed Debt Relief Initiative, known as the Common Framework for Debt Treatments Beyond the Debt Service Suspension Initiative (DSSI), which can be likened to the HIPC Initiative,” the Member of Parliament for Ajumako-Enyan-Essiam Constituency suggested.
He added that “failure by the Akufo-Addo-Bawumia government to do as recommended, within the next 18 months, would expose Ghana to a high risk of default on its debt service obligations which will plunge the country into much deeper economic crisis”.
But this was contested by a Deputy Finance Minister, Dr John Kumah, who was also at the event.
“With all the issues they raised, I have noted them. At the appropriate time, we are going to give them the necessary response except that I want to say that most of the issues they raised , they were not able to offer any alternative policies and suggestions to the government except to do criticism and tell us what we already know,” he told journalists after the programme.