Business News of Friday, 27 February 2015
Source: citifmonline.com
The Minority in Parliament is asking government to disclose the components of the $940 million support package from the International Monetary Fund (IMF).
The IMF announced that it has agreed to give Ghana $940 million to help turn around the nation’s ailing economy.
Ghana in 2014 initiated a programme with the IMF for a possible bailout from its economic woes that has manifested in the depreciation of the cedi, high inflation rates, huge wage bill among others.
But the Minority Spokesperson on Finance, Dr. Anthony Osei Akoto in an interview with Citi News said though he was not surprised at the amount of money from the IMF, the cost for such an amount should be made known.
“…What are the components, what is it going to cost us. We need to know. I believe that is part of the reasons why we are having a tax increase.”
The Old Tafo Member of Parliament further indicated that the $940 million package cannot be expended on government’s expenditure, adding, “let’s get that clear; IMF money is for balance of payment support. You cannot use IMF money to go and buy a generator. You use that to support your foreign currency.”
On the ailing economy, Dr. Akoto Osei further urged the government to put the money into good use to ease the worsening economic conditions in the country.
He observed that Ghana’s economy has been in a mess for the past three years, saying, “foreign investors will be worried. They are coming to an environment where the cost of doing business is going to be higher. Our currency has started depreciating, so we have to be more serious.”