The Country Director for Ghana, Liberia, and Sierra Leone at the World Bank, Pierre Laporte, has urged Ghana to act more quickly to apply for an IMF program to address the country’s economic problems.
He believes that without the backing, it will be difficult for the nation to handle its domestic problems.
“There is an urgency, Ghana needs to tackle these problems with urgency. What is happening in the few months is that inflation has gone up partly because of what is happening upside but also partly because the currency has depreciated,” he said.
Mr Laporte added “From where I sit, if nothing happens it will be very difficult for Ghana to find another way out domestic debt structuring is very difficult. Why? Because typically banks will invest in government papers, bonds and when you ask banks to care of stuff like that it affects the capital adequacy and it pits at risk these banks whereby international debtise easier to reschedule or restructure.”
Ghana is looking for a program under the Fund.
A settlement between Ghana and the IMF should be negotiated and completed before the end of the year, according to Kristalina Georgieva, the managing director of the IMF.
She informed President Nana Addo Dankwa Akufo-Addo that “we realize the urgency” and “we will respond as swiftly as feasible” in a private discussion on Monday, September 5, outside the Africa Adaptation Summit in Rotterdam, Netherlands.
