After the twin shocks of the pandemic and the Russian invasion of Ukraine, Ghana’s President Nana Akufo-Addo defended his choice to ask for assistance from the International Monetary Fund (IMF), claiming it was vital to “repair public finances.”
Ghana, which is experiencing a serious economic crisis, has expressed outrage over the move, and critics have accused President Akufo-Addo of breaking his initial promise not to request assistance from the IMF after claiming that a new tax would stimulate the economy.
According to a statement, IMF representatives are in Ghana to “assist in restoring macroeconomic stability, maintaining debt sustainability, and promoting inclusive and sustainable growth.”
The president stated that following the disastrous effects of the Covid-19 outbreak, which were made worse by Russia’s invasion of Ukraine, “all countries in the globe are striving to return to a condition of normality.”
President Akufo-Addo defended his choice to ask for assistance from the IMF, – https://t.co/JrwoBTHswX
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He continued, “In our instance, we have chosen to look for the IMF’s assistance to rebuild, in the short term, our public finances.
The nation of West Africa experienced its highest rate of inflation in twenty years in May, at 27%.
The government, according to Mr. Akufo-Addo, would keep working in the medium and long terms to develop the economy.
For the 18th time in its history, Ghana has applied for IMF aid. In 2015, the nation received a loan of roughly $1 billion in exchange for implementing a budget austerity plan.
A social uprising was sparked by the parliament’s vote to enact a contentious tax on electronic transactions at the end of March.
The “E-Levy” law imposes a 1.5 percent tax on all electronic transactions, including payments made using mobile money, which are very common in the nation.
