Ranking Member of Parliament’s Finance Committee, Issac Adongo has said Ghana’s current economic predicament and high indebtedness to the International Monetary Fund makes the country a risky investment destination.
According to him, the country’s high debt levels and low standing in foreign reserves will send the wrong signals to existing and potential investors.
“If you look at our creditworthiness in terms of our net international reserves to cover those portfolios, Ghana is a risky country and the IMF itself is worried,” Adongo is quoted by citinewsroom.
“But for the fact that Ghana has a track record of historically meeting its obligation to the IMF, these statistics alone [is enough] for you to know that Ghana will not qualify for an IMF programme,” he added.
The Tamale Central lawmaker further cautioned that Ghana must improve its fiscal position in order to secure another IMF programme.
The development comes after Ghana’s loans from the Fund soared by 35.3 percent in the second quarter of 2023.
The IMF in its Quarterly Finances report ending July 2023 indicated that Ghana’s outstanding loans to the Bretton Wood institution was pegged as Special Drawing Rights 1.689 billion as of July 31, 2023, which is equivalent to about $2.227 billion.
The recent figure represents $451 million SDR which is higher than the previous figure of 1.246 billion SDR recorded as of April 30, 2023.
After meeting the set conditions for a bailout package, the IMF disbursed the first tranche of $600 million in June 2023 as part of efforts to address Ghana’s balance of payments position and restore macroeconomic stability after engaging the Fund in July 2022.
The IMF report further pointed out that Ghana’s outstanding loans is 9.55 percent of Africa’s total of SDR 17.68 billion.
However, Ghana has repaid about SDR 8 million, which is equivalent to $10.55 million to the Bretton Wood institution.