IMF bailout will boost the economy and help Cedi gain strength - Economist

An Economist and a Lecturer at the Garden City University, Dr. Francis Tandoh has stated that the $3bn bailout by the International Monetary Fund (IMF) will provide economic relief and confidence in the economy.

His reaction follows the International Monetary Fund and government reaching a Staff-Level Agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.

In an interview with Peace FM News, he explained that with this agreement the cedi has gained some value during these times of negotiation with the IMF.

He made it known that the bailout will not completely take away the hardship facing the country but will cause ease for there to be reliance in the system.

According to Dr. Francis Tandoh the IMF bailout will cause the exchange rate to gain strength and also assures the public that the Government will also control the money in the system to avoid wasting of the resources provided by the IMF.

Dr. Tandoh advised the government to put adequate measures in place to ensure our economy perform better after this support since the disadvantage of such support affects government bonds, employment amongst others.

The IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion or about US$3 billion.

The economic program aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth.

The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors.