The Dean of the University of Cape Coast Business School, Prof. John Gatsi, has stated that renegotiating with the IMF is a common practice and not a negative move, as suggested by the incoming administration.
He emphasized that as long as the new administration does not cancel the program, there is no reason for concern.
Prof. Gatsi also pointed out that while renegotiating could place some pressure on the new government, particularly with debt payments resuming in 2025, it could lead to adjustments.
He mentioned that the payment amount might be increased during the review and the timeline extended by an additional year.
“It’s not a bad idea. Our IMF program has a window for renegotiation of debt. So it’s not any strange statement that the incoming president is indicating a kind of renegotiation of the terms for the IMF program. As for me, it went towards the IMF program. We are good.
We are okay because we are not hearing the incoming government saying that we are going to cancel the IMF program, the 3,000,000,000 that the IMF is giving us. I believe about 70% or so has been released already.
So you are coming to the government, and just about 30% of that money will be released. I believe you know that that puts it into pressure. And you also do know that now the resumption of debt payment, especially external debt payment, is virtually going to be in 2025.
” The IMF program is going to be ended somewhere in 2026. So that is a huge pressure on you. So you need to negotiate; perhaps the amount will be scaled up a little bit. And perhaps the period, should be extended by about a year so that you balance yourself and take off work. That is the essence of that, “
Regarding the IMF’s caution concerning the longevity of the program, Professor Gatsi stressed that the renegotiation does not pose any risk but rather enhances the fortune of the program.
When the renegotiation of the IMF program does not pose any risk to the program. The aim is to rather ensure that the program consolidates its achievement. It is not expected to derail the effort of the program at all. So that poses no risk to the program. It’s rather enhancing the fortune of the program.
The IMF is indicating that the outcome of the program is fragile. And I believe that we are used to the IMF program. Maybe in the weeks to come, we will hear more disturbing assessments from the IMF painting the true picture of the situation. So that is just the beginning of what the IMF will be telling us.
What has changed that today, the IMF is saying that it will be fragile,”
