NDC expresses concern over sale of gold reserves by IMF and UK

Accra, (Greater Accra) 21 July '99,

The National Democratic Congress (NDC) on Tuesday expressed "deep concern" over the sale of gold reserves by the International Monetary Fund (IMF), United Kingdom (UK) and some developed countries.

A statement signed by Mr Kofi Attor, Deputy General Secretary of NDC, said the decision would affect the economic survival of people in gold- producing countries.

"For a country like Ghana with gold as its leading foreign exchange earner, this is a matter of genuine and serious concern as it affects the very survival of the people."

The statement noted that the British Government plans to dispose of over 400 tonnes of gold, while the IMF plans to sell off 10 per cent of its gold, which will amount to 10 million ounces.

"This has resulted in the sharp fall in the price of gold to about 256 per ounce, the lowest in 20 years."

The statement said while NDC supports the debt relief initiative of the IMF, the party is of the view that "using gold sales to fund such an initiative amounts to robbing Peter to pay Paul".

It said already in Ghana, Ashanti Goldfields Company has given an indication that 2,000 workers may have to be laid off as a result of the slump in gold prices.

Such a situation undoubtedly leads to the worsening of the unemployment situation, which does not augur well for the development of the nation.

The NDC proposed a forum of all stake-holders, including the TUC, to urgently assess the situation and consider ways of conveying collective concerns to the IMF and British Government.