Ghana’s decision to seek a bailout from the International Monitory Fund is not an indication that the country is in crisis, the country’s Deputy Communications Minister in charge of Information, Felix Kwakye-Ofosu has said.
The cocoa producing country has opened talks with the Briton Wood Institution for assistance to salvage its ailing economy. Ghana is currently reeling under a litany of economic hardships.
The local currency, the Ghana Cedi, has plunged by about 40 percent in value against the US dollar and other major currencies since January this year, according to the Financial Times.
Inflation has also risen to 15 percent. Organized Labour and other unions went on a series of demonstrations recently to compel the John Mahama-led government to fix the economy.
Critics fear Ghana’s worsening economic crises could plunge the young oil-producer into the abyss and possibly compel the National Democratic Congress administration to sign onto another HIPC pact.
Reacting to the concerns over government’s decision to seek assistance from the IMF, Kwakye-Ofosu said the move was more for the technical assistance than the financial support.
“IMF bailout does not mean we are in crisis. There are five indicators of a nation in crisis. We have not defaulted our loans, we do have a hyper-inflation, we have a manageable debt to GDP ratio so we are not in crisis,” he told Accra-based Adom FM.