The New Patriotic Party (NPP) has said the International Monetary Fund (IMF) has confirmed the earlier dire projections by Dr. Bawumia Mahamadu on Ghana’s\u00a0ailing economy.<\/p>\n
“Before government went for this current bailout programme from the IMF, Dr. Bawumia had diagnosed the massive failures in government policy and warned of its consequences,” the party said.<\/p>\n
[contextly_sidebar id=”umxVCGihCFW0MNUtxwj26TWNACw2eHz4″]According to the NPP, Dr Bawumia had warned since 2013 that the forex controls put in place to stop the cedis slide were “adhoc, artificial and would not work.”<\/p>\n
He had also warned of the dire consequences of government policy, such as the cedi sliding to GHC4 a dollar by July 2014, which would compell the government to resort to an IMF bailout.<\/p>\n
Speaking at a lecture dubbed \u201cThe IMF Bailout: Will the Anchor Hold?\u201d at the Central University College which was held in March, Dr. Bawumia said most significant reason Ghana resorted to the International Monetary Fund (IMF) for a bailout is because of unsustained borrowing and debt stock<\/p>\n
He described Ghana as a Highly Indebted Middle Income Country (HIMIC).\u00a0<\/strong><\/span><\/a><\/p>\n His analysis was however met with condemnation by some government officials, including a statement by President Mahama that government will continue borrowing as government was not borrowing to buy “Kebab.”<\/p>\n A press statement issued by the party however indicated that “all the consequences that Dr. Bwumia warned about have happened; the cedi reached GH4 by July 2014, the forex measures put in place were ineffective and withdrawn in 2014, and Ghana has sought IMF bailout.”<\/p>\n “The IMF\u2019s confirmation of all of Dr. Bawumia\u2019s diagnoses of the government\u00a0failures and its consequences.”<\/p>\n –<\/p>\n By: Marian Efe Ansah\/citifmonline.com\/Ghana
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