Home National Politics Gov’t justification for IMF bailout contradictory, untenable – Terkper

Gov’t justification for IMF bailout contradictory, untenable – Terkper

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A former Finance Minister, Seth Terkper, has ridiculed the claim by government that global circumstances beyond its control necessitated the decision to reach out to the International Monetary Fund (IMF).

The government says its reason for seeking the IMF bailout from the Bretton Woods Institution is different and plausible from the circumstances that led the Mahama administration to seek a bailout.

Some Ghanaians have criticized the government for seeking help from the IMF.

Speaking to Starr News, Mr. Terkpe said the excuse by the government is disingenuous.

“I hear a lot of arguments that your crisis was domestic, covid was the most severe, it was the beginning of global financial crisis, and this is a contradiction because the global financial crisis started in 2008 and lasted a decade it means it lasted the Mills, Mahama administration,” he stated.

Mr. Terkper stated that the global crises affected countries such as South Africa, Nigeria and some stalwarts in Africa went into recession.

“We did a decent 3.6 of GDP if you can remember and we were told that we were inefficient. Then came covid and we experienced 0.4 growth with the same sources.

“The burst of the gas pipeline in Nigeria which gave us ‘dumsor’ gas supply and all that was it domestic? Nigeria is not a region in Ghana. The global financial crisis which they admitted the consequences of it which led to commodity prices falls. If you read our MFP and the letter of intact which as part of the reasons we gave to the fund.

“If you downplay someone’s crisis you will not prepare for your own possible crisis and that is exactly where we are,” he opined.

He also  chided Finance Minister Ken Ofori-Atta and the government for organizing a kenkey party to celebrate a successful Eurobond.

“We went back for the covid loan and because it was a rapid credit facility there was virtually no conditionality. We took the SDI and I can say for sure that one billion, how much did the KIA terminal cost even that money could have gone to the airport.

“Every minister ends the IMF program from Rawlings, Dr. Botchway but he never did any waakye party. What I know is done for the Ministry Finance is, I called all the agencies at the end of the year. We have an end of year party. It is also not just a party you acknowledge each performance,” Mr. Terkper disclosed.

Meanwhile, the delegation from the IMF are expected to begin engagement with the government on Wednesday for the bailout negotiations.

The Ministry of Finance has however, assured citizens it will commit to a successful program in the coming months.

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