Financial analyst and anti-corruption crusader, Sydney Casely-Hayford says Ghana can only access $569 million as bailout from the International Monetary Fund (IMF) due to the nature of the economy.
According to him, Ghana has a special drawing right with the IMF which allows it to only access $569million as bailout due to the underlying values of the nation’s debt and macro-economic indicators
He also revealed that per Ghana’s drawing right, it can either apply for 100% of its drawing right, double or triple the amount depending on the programme the country signs onto.
In determining the programme the nation will be signing onto, Casely-Hayford stated that when IMF team arrives in Ghana, it will engage the government in negotiations and then fashion out a programme to suit the country’s needs.
The IMF on Saturday announced it had received a formal bailout request from the Ghana government and expressed its willingness to help Ghana overcome its current economic challenges.
“The Fund stands ready to help Ghana address the current economic challenges it is facing,” the Deputy Managing Director of the IMF, Min Zhu said.
Government is also expected to issue a new $1.5 billion Eurobond towards the end of August to allow it raise sufficient funds to finance its developmental projects and revamp the Ghanaian economy.
Sharing his thought on whether it was time for government to access a bailout, Casely-Hayford said government should have applied for bailout a long time ago “considering the fact that there is a wide disparity between revenue and income accrued by government.”
He added that “when you look at that and you realize that we are not bringing in enough revenue to cover the expenditures that you have committed to spending, then you are not in the position to payback what you are borrowing”
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