IMF's $1bn not free: MP reveals Ghanaians will pay the interest on free electricity in 15 years

IMF's $1bn not free: MP reveals Ghanaians will pay the interest on free electricity in 15 years

- John Jinapor, the Member of Parliament (MP) for the Yapei/Kasawgu constituency, has shed light on the $1 billion aid given to Ghana by the IMF

- According to him, Ghana would pay the interest on the financial support for the fight against COVID-19

- Information available shows the $1 billion is the biggest financial package given to Ghana by the IMF

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The Member of Parliament (MP) for the Yapei/Kasawgu constituency, John Jinapor, has raised an alarm over the $1 billion aid given Ghana by the International Monetary Fund (IMF).

According to him, the government was economical with the truth when it created the impression that the loan comes at no cost to Ghana.

According to him, Ghanaians would pay back the loan in 15 years’ time with interest and as such the government should be careful with regard to the use of the fund.

READ ALSO: IMF predicts Africa would suffer three shocks from COVID-19

The lawmaker, per a report by peacefmonline.com, added that the subsidization of electricity would come with serious implications in the future.

"Today, in less than 3 weeks you've written to the IMF to borrow money. The money that they're using to subsidize electricity is borrowed money. We will pay back in 15 years’ time with interest, both principal and interest," he stated.

YEN.com.gh understands that the government informed Ghanaians the $1 billion aid given to the country is free of interest and as such there are no long-term repercussions.

The Minister of Finance, Ken Ofori-Atta, stated that the money was given to Ghana to be used in dealing with the economic effects of the coronavirus.

Information available shows that the aid is the biggest loan facility received from the IMF in Ghana’s 63-year old history with the Bretton Woods institution.

Sharing his opinion as part of discussions on Peace FM, Jinapor wondered why the government went to the IMF for help after declaring they would not borrow money like previous governments.

YEN.com.gh earlier reported that the IMF) has given its approval for a $1 billion credit facility to Ghana to combat the coronavirus pandemic that has ravaged the economy and inflicted hardship on Ghanaians.

The IMF, on Monday, April 13, 2020, approved the fund, which would be drawn under the Rapid Credit Facility.

The $1 billion fund is expected to be used to address urgent fiscal and balance of payment needs of the country.

It would also be used to improve confidence in the country’s economy and mobilize support from other development partners.

READ ALSO: World Bank, IMF and others moblise resources to free Africa from COVID-19

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