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Ghana runs to IMF For Bailout As Economy Collapses

 

The President of Ghana, Nana Akufo-Addo, has authorized the country’s Finance Minister, Ken Ofori-Atta to engage the International Monetary Fund (IMF) for a bailout.

Information Minister, Kojo Oppong Nkrumah, announced this in a statement dated Friday, July 1, 2022.

According to the statement, “The President of the Republic, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister, Ken Ofori-Atta, to commence formal engagement with the International Monetary Fund (IMF), inviting the Fund to support an economic program put together by the Government of Ghana.”

It said “this follows a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund.”

“At a meeting on June 30th, 2022, the cabinet indicated its support for the decision,” the statement added.

“The engagement with the IMF will seek to provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the Covid-19 pandemic and, recently, the Russia-Ukraine crises”, it noted.

This is not the first time Ghana is running to the Fund for a bailout.

Ghana went to the IMF in April 2015 for a $918-million loan to support its crippling currency and help stabilise the economy. It exited the IMF programme in 2018.

Ghana’s economy has been facing challenges in recent weeks.

Data from its Central Bank sighted by African Entertainment showed that the country’s economy grew by 3.3% in the first quarter of 2022 compared to the same period in 2021 and inflation surged to a record of 27.6% in May.

In recent weeks, Ghanaians have been complaining about economic crisis, leading to the two-day Arise Ghana demonstration.

The Arise Ghana group during the protest asked the government to cancel the Electronic Transaction Levy (E-levy) immediately and also take steps to reduce inflation and arrest the depreciation of the cedi to help bring relief to the Ghanaian people.

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