News
IMF $3bn Bailout: Joe Jackson urges govt to avoid reckless borrowing
The Director of Business Operations at Dalex Finance, Joe Jackson, is urging the government to refrain from excessive borrowing following the International Monetary Fund’s (IMF) $3 billion bailout for Ghana.
Speaking on Eyewitness News on Citi FM, Joe Jackson emphasized the need for the government to take a retrospective look at the activities that led to the economic crisis.
He stressed that the government should use the funds wisely and avoid reckless borrowing, as this would only worsen the economic situation.
Joe Jackson highlighted that receiving the bailout funds comes with the responsibility of ensuring proper utilization.
He cautioned against another spending spree and emphasized the importance of behaving responsibly to secure future tranches of the bailout.
“What this means is that, once we have taken the money, the behaviour that we have to undertake to ensure that this money is spent properly, has to kick in. We now have to make sure that we do the right thing. If anything at all, this is absolutely the wrong time to believe that we can be reckless in borrowing”.
He added, “This is the time you get prudent with your money. It’s not an invitation to go on another spending spree, it’s not the time to show your bad habits. If government doesn’t behave, it won’t get the 2nd tranche, talk less of the 3rd tranche. The whole world is watching to see how government will behave”.
He urged the government to learn from the current challenges and take measures to prevent reckless borrowing in the future.
“The programme is going to be for a few years, so I’m sure we will behave properly. We are so close to disaster this time, so close to total collapse that we have to learn our lessons. We need to ask ourselves the things we can do to prevent future governments from this reckless borrowing. How do we make sure that we don’t borrow and borrow until we can’t pay anymore? How do we make sure this does not happen again?” he emphasised.
Joe Jackson also called for a reduction in the size of government appointees and the elimination of ineffective State-Owned Enterprises draining the country’s resources.
The government sought financial assistance from the IMF due to various factors, including Ghana’s escalating debt situation, the impact of the COVID-19 pandemic, the Russia-Ukraine war, the banking sector clean-up, and excess capacity payments in the energy sector.
On December 12, 2022, the IMF reached a staff-level agreement with Ghanaian authorities on a new arrangement under the Extended Credit Facility.
Vice President Dr. Mahamudu Bawumia acknowledged the limited revenue generation options faced by the government amid the worsening economic challenges, leading to the decision to seek support from the IMF.
President Nana Addo Dankwa Akufo-Addo also expressed confidence in Ghana’s engagement with the IMF, stating that the deal would spur economic growth.
Credit: citinewsroom.com
The Diaspora Affairs Office at the Office of the President has hosted a delegation of African diaspora women who are in Ghana ahead of a planned Presidential Conferment of Citizenship ceremony.
The Director of Diaspora Affairs, Kofi Okyere Darko, explained in a Facebook post that the visit was a gesture of appreciation by the delegation to the Government of Ghana for its continued efforts to reconnect Africans in the diaspora with their ancestral homeland.
He indicated that the ceremony, scheduled for next Monday, will officially grant Ghanaian citizenship to members of the delegation as part of the country’s broader engagement with the African diaspora.
The delegation was led by Erica Bennett, Founder of the Diaspora Africa Forum.
According to Mr Okyere Darko, her years of advocacy have played an important role in strengthening ties between Africa and people of African descent living abroad.
He noted that the group’s journey towards citizenship represents not only a legal process but also a cultural and spiritual return to their roots.
Also present at the meeting was Natalie Jackson, an attorney who is also expected to receive Ghanaian citizenship during the ceremony. She works closely with renowned civil rights lawyer Ben Crump.
Mr Okyere Darko emphasised that Ghana remains committed to strengthening relationships with the African diaspora and promoting unity, identity, and shared heritage among people of African descent worldwide.
By: Jacob Aggrey
Ghana has signed a debt restructuring agreement with the Kingdom of Belgium as part of efforts to restore the country’s economic stability after the financial crisis that hit the nation in 2022 and 2023.
The Minister of Finance, Cassiel Ato Forson, today disclosed that he signed the agreement on behalf of the Government of Ghana.
He explained that Ghana experienced a very difficult period during the crisis, which forced the government at the time to declare a debt default.
However, he indicated that the country is now recovering and witnessing a significant economic turnaround.
According to him, stronger systems are also being put in place to ensure that Ghana does not return to such a situation again.
Dr Forson noted that the agreement with Belgium is the eighth deal Ghana has concluded with countries under the Official Creditor Committee as part of its external debt restructuring programme.
He expressed appreciation to the Government of Belgium for its support and partnership with Ghana during the process.
The Finance Minister thanked Carole van Eyll, Ambassador of Belgium to Ghana, for her role in strengthening relations between the two countries.
The agreement forms part of Ghana’s broader effort to restructure its external debts and stabilise the economy following the crisis.
By: Jacob Aggrey
News1 week agoFinance Minister outlines new gold policies to boost reserves and curb smuggling
- News1 week ago
Sam George launches the 2026 Meteorological Awareness Month; presents the 2026 seasonal forecast for southern Ghana
- Hot!1 week ago
Breaking: Footballer who killed two children in Abesim handed lifetime sentence
