An Economist and a Senior Lecturer at the University of Cape Coast, Dr John Gatsi, says government's intention to go to the IMF for a bailout does not mean that the country's home grown policies are not working.

He said the home grown policies will only work if there is capital injection into the economy.

Dr Gatsi who was speaking on Uniiq Breakfast Drive says it is these policies that would encourage the IMF to consider assistance to Ghana.

Dr John Gatsi said the move by government will definitely be beneficial to the economy but could be temporary.

Meanwhile, Head of the Economics Department at the University of Ghana, Professor Peter Quartey, says the move by government to go to the IMF will restore confidence in the economy.

He noted that it will also create some investor confidence and credibility for the country.

Prof Quartey said though there are conditions attached to this, Ghanaians should also look at the brighter side of the bailout which includes technical advice on how to boost the economy.

In a related development, the Secretary General of Ghana Federation of Labour, Abraham Koomson, says it is not bad thing if government wants to resort to an economic bailout from the IMF to engage challenges in the economy.

He said workers in the country are suffering and any move meant to alleviate the problem is welcome.

The Minister of Finance, Seth Terkper, says discussions with the IMF for a bailout will be based on the country's new status as a lower middle income country.

Speaking on Uniiq Breakfast Drive from Washington Mr Terkper said the medium term development plan that Ghana has developed will inform deliberations with the International Monetary Fund.

He said Ghana will exit when the imbalance in the economy is corrected as was done in the past.

Mr Terkper also spoke on the Second Millennium challenge compact that Ghana is about to sign with the US.