The Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Prof. Peter Quartey says the government will still have to continue the collection of the Electronic Transfer Levy (E-levy) despite the move to the International Monetary Fund (IMF) for a bailout.
Prof. Quartey however, added that the government must also initiate moves to have the charges on the levy reduced.
“The IMF work together with governments. Initially, the policies and everything were just handed over from Washington to the respective countries, this has changed now. You have to develop your own policies and engage with the IMF and they will tell you which ones to take out, which ones to add and then you come to a consensus, based on that they will say, we will fund your programme.
“That is done through balance of payment support. It may take time, in the case of Sri Lanka, Sri Lanka announced they were going to the IMF and today, they haven’t finished the process,” he told TV3.
The ISSER Director also warned Ghanaians against immediate expectations from the bailout adding that the process and engagements with the Fund have to take some time.
Meanwhile, former President John Mahama in a Facebook post on July 2, 2022 has urged President Akufo-Addo to remove Vice President Mahamudu Bawumia as chair of the Economic Managment team as Ghana goes to the IMF for a bailout program.
Mr. Mahama also says Finance Minister Ken Ofori-Atta has lost credibility and should not be part of the team to negotiate with the IMF on behalf of Ghana.
In a statement following government’s decision to seek a bailout from the IMF, Mr. Mahama said Ghana should present a home-grown solution to the IMF.
“I welcome President Akufo-Addo’s decision to formally engage the IMF with the view to entering into a programme under the Fund.
“Though belated, it should mark an important step towards addressing the dire economic situation, which has left Ghanaians wallowing under intense suffering and hardships.
“Beyond the announcement of engagement with the IMF, a comprehensive home-grown programme should be fashioned out and presented to the Fund for support. It is imperative that a team of skilled and competent negotiators is put together to obtain the best set of measures with the Fund,” Mr Mahama said.
He added: “The Finance Minister who has supervised the disastrous collapse of the economy cannot and should not be part of the team of negotiators. He has lost credibility and the trust and confidence of stakeholders in our economy.
“President Akufo-Addo must take a bold decision to replace his finance minister immediately with a more assured and competent person who is willing and able to work tirelessly to turn our almost hopeless situation around.
“In addition, given his obvious failures, the Vice President must be relieved of his responsibility as Chair of the Economic Management Team to enable the President to reconstitute the team.
“We must draw useful lessons from this episode and avoid cheap politicking with the economy; that can only yield the disastrous outcomes that have brought us here.”
