IMF loan will not save Ghana’s economy – US Economist


He predicted that a new IMF program will fail, just like the previous 17 ones had.

Hundreds of Ghanaians were in a rage on Friday, July 1, after hearing that the government had decided to ask the IMF for help.
Numerous disgruntled citizens then flocked to social media to condemn the situation.
Later, some of the disgruntled residents launched an attack on the IMF’s support for Ghana on its official Facebook page.

Professor Steve Hankes, an international economist from the John Hopkins University has said the IMF loan will not save Ghana’s economy. 

Professor Steve Hanke asserts that Ghana’s economy cannot be saved by another IMF loan.

Professor Steve Hankes

He predicted that a new IMF program will fail, just like the previous 17 ones had.

He also disclosed that Ghana’s yearly inflation rate will be around 49.35 percent, according to statistics on exchange rates from the free and black markets.

Meanwhile, the University Teachers Association of Ghana (UTAG) has warned the government that it won’t tolerate IMF conditionalities that will disadvantage its members.

The University Teachers Association of Ghana (UTAG) will not accept any conditions that will harm its members, according to the press statement of the Association.

The Association announced on Monday, July 4, that it has noted the government’s request for financial support from the Fund.

However, it emphasized that it would not accept any policy order from the Fund that had negative consequences.

A portion of the statement said, “We, thus, feel unhappy with the Government’s decision given its possible adverse impact on UTAG members, and by extension public sector workers, and its consequence on the operations of Public Universities.”

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“We want to make it clear that the Ghanaian government must make sure that the terms of the support do not adversely affect the terms of service of labor unions, particularly UTAG.

“The statement said, “In particular, UTAG would not accept any IMF conditionality that adversely affected the current agreements between Government and UTAG to enhance the Conditions of Service of our members.

However, UTAG advised the government to embrace the chance to visit the IMF to “employ local expertise to support the formulation of a comprehensive programme that would form the basis of all negotiations with the IMF.”

IMF loan will not save Ghana’s economy – US Economist



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