Source: newsthemegh.com
According to former president John Mahama, in order to save the country’s failing economy, the government must agree to the strictest International Monetary Fund (IMF) requirements.
He claims that the banking industry will suffer greatly as a result of the haircuts included in the IMF’s conditionalities.
Speaking in front of the National Democratic Congress (NDC) European Chapters Conference in Amsterdam, the Netherlands, Mr. Mahama said that the financial stability of Ghanaian banks has declined, and that this will negatively affect the performance of the financial sector and result in job losses.
“Ultimately, too little was done too late since our economy had gotten so bad that we could only secure an IMF programme by agreeing to the most stringent requirements. Ghanaians have spent a disproportionate amount to get an IMF program. Domestic bondholders have suffered excruciating haircuts and will be denied a sizable amount of interest that is owed to them in 2023.
In the same way that people who depend on pension payments for their existence will suffer, Mr. Mahama said, “insurance companies and pension funds invested in government bonds will also suffer.”
In addition to this already unfavorable economic climate, he added, other taxes have been imposed on Ghanaians in only the past two years. The lives of our people will be made even more miserable by over 23 additional tax measures. The strain on businesses and individuals is growing as a result of sharp rises in utility costs.
“Excise taxes and import duties have skyrocketed. No wonder the Togo and Benin ports are still busy and receiving cargo that ought to have gone through our ports while the Tema and Takoradi ports have lost volume.
One of Ghana’s hot-button issues, according to the former president, is the rate at which the country is “losing our (health) professionals, trained at great expense, to other countries.”
“I feel sorry for the young people of Ghana! Their sense of helplessness and despondence is unheard of in our history. They are currently looking for any opening to leave our territory in pursuit of greener pastures.
The question we should be asking is: How can we give Ghanaians new hope in the midst of their ongoing struggles? The NDC has proven that we are the most realistic option by performing well during our time in office. In the past, we have changed the trajectory of our nation and brought it back to a respectable level of health. We owe it to our nation to push for change once more and provide relief for Ghana’s long-suffering citizens, he said.