It's no surprise that Ghana is returning to the IMF – Ato Forson

General News of Tuesday, July 30, 2019

Source: starrfm.com.gh

2019-07-30

The minority in Parliament is predicting Ghana's return to the IMF for a bailout package given the deteriorating economic situation in the country.

According to NDC deputies, the swelling of the public debt, which should rise to 220 billion GHC by the end of the year, as well as the decrease in foreign exchange reserves, will force the government to turn to the Briton Wood Institution for help just three years later. 1 year program, entered by the former administrator of Mahama.

Reacting to Finance Minister Ken Ofori-Atta's presentation of the mid-year budget, Cbadie Ato Forson, spokesperson for minorities on finance, described the speech as misleading.

"I would not be surprised if Ghana returns to the IMF, we ask it to help the balance of payments. This means that when your reserves begin to fall and investors begin to lose confidence in you, you have to show them that you can repay your debt, your currency is not well, "he told the media.

For his part, former Deputy Minister of Electricity John Jinapor called for an immediate withdrawal of increases in the levies in the oil sector, arguing that the reasons given to justify the adjustments are untenable.

"In this country, we must have principles, you can not be against ESLA two years ago and suddenly become a promoter. They called ESLA a harmful tax and Mahama was described as devilish and insensitive. "

On Monday, Finance Minister Ken Ofori Atta announced an increase in the levies in the energy sector.

Presenting the 2019 semi-annual budget review to Parliament on Monday, July 29, Ofori Atta announced that Ghanaians will have to pay an extra 20 pesos per liter of gasoline and diesel and 8 more per kilo of LPG.

Mr. President, you may recall that the government published in 2017 the Bond (Energy Sector Law), which has so far raised almost GHS 6 billion from the levies ESLA to pay the debts inherited from the "fictitious days" of the NDC.

"The proceeds from bonds have been used to liquidate about 60% of the inherited debts of the energy sector. The government proposes to raise taxes on the energy sector by 20 GHp per liter for gasoline and diesel and 8 GHp per kg for LPG, in order to increase the inflow to allow the government to issue additional bonds to repay our energy sector debts.

"Based on current indicative prices for gasoline and diesel, this equates to 90 GHp per gallon."