The $3 billion bailout from the International Monetary Fund (IMF) would fail, according to economist Prof. Lord Mensah, if the government continues to refuse to reduce part of its spending.
The country is battling its worst economic crisis in decades and the government requested an IMF intervention to assist revive the economy.
The government began a domestic debt swap scheme on December 5, 2022, as part of a crucial condition for the government to get an economic program from the International Monetary Fund.
The government encouraged holders of certain domestic notes and bonds with principal amounts of about GH137.3 billion to exchange their Eligible Bonds for a package of new bonds that would be issued by the government.
Prof. Lord Mensah stated the IMF assistance will be ineffective until the government agrees to make certain cuts in expenditure , he said this in an interview with Citi News.
“Government should look at what they are also going to sacrifice. We cannot stick to the same structures that got us into the economic mess we found ourselves in. If the government wants one party to sacrifice, the issue will be what are they [government] also sacrificing?”
“We recommend that government at least changes the governance structure, ad remove some offices to ensure that we cut cost.”