IMF $3bn bailout: Joe Jackson cautions government against reckless borrowing

Joe Jackson, the Director of Business Operations at Dalex Finance has warned the government against excessive borrowing.

His comment is a direct response to the International Monetary Fund’s (IMF) $3 billion bailout for Ghana.

According to Joe Jackson, the government must reflect on its activities that landed the country in economic crisis and instability and avoid them. He called on the government to judiciously use the funds wisely and avoid reckless borrowing and he believes any such move would worsen the country’s struggling economy.

“What this means is that, once we have taken the money, the behaviour that we have to undertake to ensure that this money is spent properly, has to kick in. We now have to make sure that we do the right thing. If anything at all, this is absolutely the wrong time to believe that we can be reckless in borrowing,” he explained in a one-on-one engagement with Eye Witness news.

The financial expert added that securing an IMF bailout comes with the responsibility of ensuring the proper and prudent use of funds.

He said, “This is the time you get prudent with your money. It’s not an invitation to go on another spending spree, it’s not the time to show your bad habits. If government doesn’t behave, it won’t get the 2nd tranche, talk less of the 3rd tranche. The whole world is watching to see how government will behave”.

Joe Jackson stressed the importance of the government being able to identify and avert past moves that landed the country in its current economic hardship.

“The programme is going to be for a few years, so I’m sure we will behave properly. We are so close to disaster this time, so close to total collapse that we have to learn our lessons. We need to ask ourselves the things we can do to prevent future governments from this reckless borrowing. How do we make sure that we don’t borrow and borrow until we can’t pay anymore? How do we make sure this does not happen again?” he emphasised.

EAN/BOG