The Director of Business Operations at Dalex Finance, Joe Jackson, is urging the government to refrain from excessive borrowing following the International Monetary Fund’s (IMF) $3 billion bailout for Ghana.
Joe Jackson stressed the necessity for the government to look back on the actions that contributed to the financial crisis.
He emphasized that in order to avoid worsening the economic crisis, the government should use the funds prudently and refrain from borrowing carelessly.
Joe Jackson emphasized that obtaining bailout money has the obligation to ensure proper use.
He warned against going on another spending binge and highlighted the significance of acting responsibly to receive additional bailout tranches.
This implies that the actions we must take to guarantee that the money is correctly spent must begin as soon as we have received it. Now, we need to be careful to act morally. If anything, now is the very worst time to think that we can borrow carelessly.
“This is the time to become financially responsible,” he continued. It’s not a request to go on another shopping binge, and it is not the time to indulge in poor habits. If the government acts responsibly, it won’t receive the second payment, much less the third tranche. The entire globe is interested in how the government will act.
He asked the government to take action to stop future imprudent borrowing by learning from the difficulties it is currently facing.
“Since the initiative will last for several years, I’m confident we will act appropriately. This time, we are so close to catastrophe and complete collapse that we must take note of our mistakes. We must ask ourselves what we can do to stop future governments from borrowing carelessly. How do we prevent ourselves from continuing to borrow till we are unable to make payments? He emphasized, “How can we ensure that this doesn’t happen again?
Joe Jackson also demanded the closure of inefficient State-Owned Enterprises that were sapping the nation’s resources and a reduction in the amount of government appointees.
Due to a number of issues, including Ghana’s mounting debt, the COVID-19 pandemic’s effects, the Russia-Ukraine conflict, the need to clean up the banking industry, and excess capacity payments in the energy sector, the government requested financial assistance from the IMF.
The IMF and the Ghanaian government agreed to a new arrangement under the Extended Credit Facility on December 12, 2022 at the staff level.
Vice President Dr. Mahamudu Bawumia acknowledged the government’s limited possibilities for generating cash in the face of escalating economic difficulties, which prompted the choice to request assistance from the IMF.
The IMF agreement between Ghana and the country’s president, Nana Addo Dankwa Akufo-Addo, was praised for promoting economic growth.