Former Finance Minister Seth Terker has, against the odds, defended the then Mahama-government’s decision to take the country to the IMF despite the criticism that has been directed at the administration.
In his opinion, taking the decision was the best at the time and came out of suggestions from the Senchi Forum, organised to have a broad discussion by experts and stakeholders in the management of the economy and running of the country.
Seth Terkper argued that government presented the situation facing the country’s economy to the stakeholders gathered and they concluded that it was imperative and strategic to invite the IMF to assist Mahama-administration get back on track.
The decision he insisted resulted in investments from donor agencies and foreign entities with ability to attract external support.
“What came of Senchi is to go to IMF because the fiscal situation particularly after we have calculated the liability associated with the Single Spine and after we have seen the situation back then we had a bit of drought and other things. When we had seen all of this, the pragmatic thing to do was to go to IMF,” Seth Terkper disclosed.
The Former Finance Minister during whose tenure the decision was made pointed to the failure of the Home Grown Policies to resolve the issues affecting the economy comprehensively, subsidies and liabilities.
Ghana at the time was also battling with high cost of purchasing Gas thus resorting to buying crude and the burden of the Single Spine Salary Structure, a situation that was too much for its resources to support.
“It was one of two choices. You go or you don’t go. Remember when we took over in 2013 and we did the ‘Home Grown’ with the assistance of African Development Bank, we thought we could manage, but when we calculate the subsidy, liabilities and when you calculate in particular the impact of lack of Gas supply. Remember we were not getting cheap gas from Nigeria and we had to by crude for VRA using our hard currency to keep our power running” he added.
Ghana has successfully completed the IMF programme and is expected to assume full control of the running of the economy from April.
The successful completion has been described as a sigh of relief by many suggesting that it will lead to more spending and improvement in the living conditions of the people.
Akufo-Addo led administration has vowed not to maintain a disciplined expenditure regime so as not to go back to the IMF for assistance.
By: Jonah Eledi/awakenewsonline.com
