Finance Minister, Ken Ofori-Atta, has insisted that Government would not go back to the International Monetary Fund (IMF) for support despite the current economic challenges.
He said the Fund knows Ghana is completely in the right direction with regards to the internal measures and policies introduced to deal with the fundamental issues affecting the economy.
Speaking at a press conference in Accra on Thursday, May 12, 2022, Mr. Ofori-Atta iterated that the Akufo-Addo-led government has put in place several measures including salary cuts and other programs to deal with the fundamental difficulties that the country currently faces.
“We have committed to not going back to the fund because in terms of the interventions and policy, we are right there; the fund knows that we are completely in the right direction. The issue is, validating the programs that we have put in place and then, in my view, supporting us to find alternative ways of financing or re-financing our debt, re-profiling it”.
Ken Ofori Atta
Ken Ofori-Atta explained that Ghana is a member of the fund and there are two major points of interventions that it can obtain from the fund. One of them, he said, is the advice that “we get because of the phenomenal expertise that the fund has and then secondly, these program interventions which bring us some resources”.
“I think, if you see from the budget that we constructed for 2022 and the subsequent announcement that we have done, clearly, the issue of Ghana having the capacity to think through the consolidation exercise exist. Also, discipline itself, with regards to the 20 percent, etc, that, we have shown clearly”.
Ken Ofori Atta
This is not the first time the Finance Minister is saying Ghana would not return to the Bretton Woods institution for support despite the mounting economic challenges. He said at the 3rd Townhall meeting on the E-levy on February 10, 2022 in Tamale that a return to the Bretton Woods institution will have dire consequences on the country.
Agyapa Royalties deal has not been abandoned
Meanwhile, Ken Ofori-Atta also said at the press conference in Accra, on May 12, 2022 that he still has in his mind the Agyapa Royalties agreement because he believes it is best for the country.
Ken Ofori-Atta said his firm philosophical belief is that the capital market is a platform where Ghana can mobilize equity resources but the country is not leveraging on it. He said the discussions should shift from whether it is good or bad to monetize mineral royalties or list them on the stock market to the process of doing that. He insisted the deal “is good because that is how you raise the resources”.
“If you have a problem with the process just articulate it, let’s cure it but let us not drop something that will be good for us, that will reduce our debt exposure. So those are two very different questions. How best to do it as opposed to, don’t do it. My mind is still there, I know the President has mentioned something about that going through the AG, Parliament to do that.
“But it is not something that is an asset to the country that one need to drop, you need to examine all your equity and debt positions and the best choice for the country. We will never have done free SHS if we listened to other people; that is 400,000 lives that have a chance to do something. We would have stopped shot at e-levy because of the noise, suddenly we have a tax handle that will be phenomenally important for the country. So we need to look at that”.
Ken Ofori-Atta
His comments followed reports that the Minerals Income Investment Fund (MIIF) is redesigning its strategy for listing its wholly owned subsidiary, Agyapa Royalties, on the London Stock Exchange and the Ghana Stock Exchange after being named the best financial institution in the mining sector by the French-based publication, Forbes Monaco.
Forbes recognized MIIF’s strategic acquisition of over 14 million shares and a roughly 4.65% stake in Asante Gold Corporation, a Canadian- and Frankfurt-listed gold production company which operates in Ghana.
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