Ghanaian President Nana Akufo-Addo on Sunday reassured the country that his government can manage an economic crisis as it is in advanced stage of talks on a loan agreement with the International Monetary Fund (IMF), reported The Reuters.
In a televised address on Sunday night, Akufo-Addo urged the country’s people to support his decision to seek an IMF loan.
Ghana is seeking a $3 billion monetary loan as the country faces 35 percent inflation, a sharp fall in the value of cedi currency and high debt service payments.
“We are in a crisis, I do not exaggerate when I say so,” the Ghanian president said in his speech. “I urge us all to see the decision to go to the International Monetary Fund in this light. We have gone to the fund to repair, in the short term, our public finances.”
The Ghanaian government has opened talks with the IMF over a deal and Akufo-Addo said they expected to reach an agreement before the end of the year. He said the loan will help the government to take necessary measures to stabilise and grow the economy, and shore up the country’s currency.
The president said once the IMF deal goes through, the government won’t need to undertake any so-called “hair-cuts” to trim the value of the country’s debt, which would lead to a reduction in the face value of government bonds.
He also said the government would review import policies and support farmers to reduce dependence on now more costly imported goods.
The Ghanaian president also vowed to tighten measures to restore the foreign exchange markets such as controlling illegal operators as a way to support the cedi.
Last week, Ghana’s ruling party lawmakers demanded Akufo-Addo suspend his finance minister and another top ministry official, adding pressure his government over the country’s economic woes.
