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Business News of Tuesday, 25 July 2017


Government shoots down ‘friendship’ ties with IMF after 2018

Government has insisted it will not subscribe unto the Policy Sector Initiative (PSI) with the International Monetary Fund (IMF) after the deal expires in December 2018.

The NPP argues that the fund’s intervention has least improved the economy.

Former Finance Minister, Seth Terkper has suggested that Ghana signs onto the PSI to benefit from financial advice and support without a borrowing arrangement.

According to Mr. Terkper, the move is necessary due to the bright economic prospects and the need to maintain fiscal discipline.

But commenting on the suggestions, the Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah maintained that the NPP government will not yield to such suggestions.

“After three years or three years eight months, come December 2018, why shouldn’t we exit the program? We entered into the three year program for all intent and purposes, we will extend it to December 2018 as it has been clarified by the President. After 2018, why should we still be engaged in any form of association with the IMF?” he told Citi Business News.

Dr. Assibey Yeboah, an Economist by profession further justified that his party has the necessary mechanisms to foster fiscal discipline and achieve economic growth.

“Is Mr. Terkper saying that the NPP doesn’t have the credibility to be fiscally responsible? Maybe under his regime and with what he saw with the handing the economy, he thinks we should be attached to the apron strings of the IMF forever but I do not think so.”

The New Juaben South legislator further said, “Come December 2018, we exit the IMF program and that is it, let’s stand on our own feet and be fiscally responsible and then we move on as a Sovereign country.”