Following the International Monetary Fund’s (IMF) $3 billion bailout for Ghana, Dalex Finance Director of Business Operations Joe Jackson is urging the government to avoid excessive borrowing.
Joe Jackson emphasized the need for the government to examine the events that led to the economic crisis in an interview with Citi FM’s Eyewitness News.
He focused on that the public authority ought to utilize the assets shrewdly and keep away from crazy acquiring, as this would just deteriorate what is going on.
Joe Jackson emphasized that the obligation to ensure proper utilization comes with receiving the bailout funds.
He advised against going on another spending binge and stressed the significance of acting responsibly in order to secure additional bailout funds.
“This means, whenever we have taken the cash, the way of behaving that we need to embrace to guarantee that this cash is spent appropriately, needs to kick in. Now we must ensure that we act appropriately. This is absolutely not the time to believe that we can borrow recklessly, if at all.
He added, “This is the time you get reasonable with your cash. It’s anything but an encouragement to go on one more spending binge, it’s not an opportunity to show your negative behavior patterns. The government will not receive the second or even the third tranche if it behaves badly. The entire world is keeping an eye on the government to see how it behaves.
He urged the government to take the lessons learned from the current difficulties and implement measures to prevent future reckless borrowing.
Because the program will last for a few years, I am confident that we will behave appropriately. We must learn our lessons because we are so close to disaster and total collapse this time. We need to consider what we can do to stop future governments from recklessly borrowing money. How can we ensure that we do not borrow until we are unable to pay? How can we prevent this from happening again? He stressed.
Joe Jackson likewise required a decrease in the size of government deputies and the end of incapable State-Possessed Ventures depleting the nation’s assets.
The escalating debt situation of Ghana, the impact of the COVID-19 pandemic, the Russia-Ukraine war, the banking sector clean-up, and excess capacity payments in the energy sector were some of the reasons why the government sought financial assistance from the IMF.
The IMF and Ghanaian authorities reached a staff-level agreement on a new Extended Credit Facility arrangement on December 12, 2022.
VP Dr. Mahamudu Bawumia recognized the restricted income age choices looked by the public authority in the midst of the demolishing monetary difficulties, prompting the choice to look for help from the IMF.
In addition, President Nana Addo Dankwa Akufo-Addo stated that the agreement would encourage economic growth and expressed confidence in Ghana’s engagement with the IMF.
