Bright Simons: Claims That Half The World's Countries Have Gone For IMF Bail Out Are Not True

Bright Simons: Claims That Half The World's Countries Have Gone For IMF Bail Out Are Not True

  • Bright Simons has said claims that half the world's countries have gone to IMF for a bail out programme are false
  • The outspoken social commentator said the claims being made by government spokespersons to justify Ghana's IMF bail out are flawed
  • He explained in a tweet that while many countries have gone to the IMF for a programme, not many of them have sought a bail out deal

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Renowned social innovator Bright Simons has dismissed claims by Ghana government spokespersons that half the world's countries have gone for an IMF bail out.

Bright Simons
Bright Simons is a renowned scientist and social innovator. Source: Facebook/@bbsimons
Source: UGC

The honorary vice president of think tank IMANI Centre for Policy and Education said there are many programmes other than bail out that countries engage the IMF for.

"The IMF has many programs. Those that can be classed as "bailouts" are not the ones like the RFI, RCF & CCRT that many countries, incl Ghana, went for in 2020.

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"Only about 25% of countries with an IMF program are getting the treatment Ghana needs (ECF/EFF) [Extended Fund Facility/ Extended Credit Facility] & have needed 4 times since 2000," he tweeted on Tuesday, July 5, 2022.

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According to him, it is also not true that Ghana only needs balance of payments support from the IMF to fix macroeconomic volatility.

"Debt sustainability & macroeconomic stability help is needed too," he stressed.

Bright Simons' clarification follows a report by pro-government Daily Guide that Ghana is not the only country seeking support from the International Monetary Fund.

The newspaper report claimed that half of the world's countries have approached the Fund for emergency loans to deal with the financial crisis sparked by the global coronavirus pandemic.

The report claimed that IMF Managing Director, Kristalina Georgieva, told a meeting of G20 finance ministers and central bank governors in April that more than 100 countries had asked for emergency assistance.

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US Economist Steve Hanke Predicts Financial Programme Will Not Save Ghana's Economy

A surprise decision by the government of Ghana to turn to the IMF for bail out will fail, according to a US economics professor, Steve Hanke.

According to the international economist at the John Hopkins University, USA, Ghana's request for financial assistance from the IMF to correct balance of payment distortions not will help the troubled economy.

"Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last ditch effort, the govt. has begun negotiations w/ the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won't save GHA's economy. Like its past 17 IMF programs, a new one will fail," he tweeted over the weekend.

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