Haruna Iddrisu, a member of parliament representing Tamale South, has expressed concern over certain parts of the agreement between the government of Ghana and the International Monetary Fund (IMF).
He said the proposal was “extremely ambitious,” especially in light of the proposed conditions.
“It appears to me that the IMF ECF that the government of Nana Addo Dankwah Akufo-Addo and Bawumia have signed is an overambitious one. It is overambitious in the sense that it is going to affect the fiscal space that may be available to a successor government. It may be the John Mahama government and the NDC government tomorrow,” he said.
This comes after the IMF granted Ghana’s programme request for $3 billion in balance of payments assistance to help stabilise the country’s economy. According to him, the incoming government would have significant difficulties due to the conditionalities’ inherent character.
The former Minority Leader expressed his concern on Joy FM’s Super Morning Show that the three-year duration of the project might interfere with the ambitions of whoever assumes office in 2024.
“Inherent in this agreement is that there shall be no non-concessional borrowing between now and 2027… There shall be no access to non-concessionary borrowing. So it means that… for concessional financing, the government may not be able to borrow between now and 2027. That is what excessive and reckless borrowing does to an economy, apart from the debilitating effect on the private sector, businesses, and employment.” he added.
