IMF bail-out will bring pain – Expert

A financial expert has predicted that the bail-out government is seeking from the International Monetary Fund (IMF) will inflict marginal pain on Ghanaians, thus advising all to brace up for the period.

He advised also that until corruption is completely curbed, the benefits of the bail-out will not be attained.

Kenneth Thompson was speaking with TV3’s Kweku Temeng on Monday, August 4 when he made these observations.

“There is going to be an attempt to curb expenditure, public sector wage bill would have to be managed, [IMF is] going to start to remove subsidies on things like petrol, electricity, water…[IMF] will require us to do things in a certain way," he noted.

Government announced an IMF bail-out over the weekend to restore confidence in the economy.

Mr Thompson, who is also Chief Executive Officer of Dalex Finance and Leasing Company Limited, pointed out that there are other positive outcomes Ghanaians can look up to with the bail-out.

“The positive thing is that the Cedi will depreciate but that will slow down,” he mentioned.

“This is an opportunity for people who export [too].”

One voice

Mr Thompson, however, called for one voice in accepting the recommendations of the Bretton Woods institution, saying the last time Ghana went for a bail-out of such nature was during the “decades of silence”.

“At that time, I don’t think Ghanaians were able to contribute towards the debate. Now, it is not going to be that easy because everybody has a radio...and people would want to expect that they will be part of the process.”

He said all government communication machinery on the programme should be in unison.

“We need the government to speak with one voice…and let’s carry the people along and let’s make sure we are able to manage corruption.

“Corruption will literally erode all the benefits of the bail-out.”