Cedi Depreciation, Inflation Putting Ghana At Risk: World Bank Director Demands Urgent Solutions
- The World Bank Country Director for Ghana, Liberia and Sierra Leone, Pierre Laporte, says the cedi depreciation and high Inflation is putting Ghana at risk
- According to him, if nothing urgent is done to find solutions to the current economic challenges, the country is likely to sink further
- Mr Laporte also revealed that Ghana is likely to receive some $600 million as the balance of payment support for the 2023 budget
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The World Bank’s Country Director for Ghana, Liberia and Sierra Leone, Pierre Frank Laporte, has called on Ghana to find urgent solutions to the current economic crisis.
According to him, cedi depreciation and the high inflation is sinking the country further and putting it at high risk.
This comes at a time the Akufo-Addo-led government has returned to the International Monetary Fund (IMF) for a bailout to help cushion the country, which experts say is heading towards a major financial crisis akin to what was witnessed during the 1980s.
Speaking on the back of this, Mr Pierre Laporte said if urgent measures are not taken, the country’s domestic debt structuring will be difficult.
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“From where I sit, if nothing happens it will be very difficult for Ghana to find another way-out, domestic debt structuring is very difficult. Why? Because typically banks will invest in government papers, bonds and when you ask banks to care of stuff like that it affects the capital adequacy and it puts at risk these banks whereby international debt is easier to reschedule or restructure,” he said in an interview on Accra-based TV3.
He also added that Ghana is likely to benefit from a $600 million budgetary support for next year’s budget.
“….We can give around 30 to 40 per cent of the country’s budget support and for Ghana we are looking around $600million. Ghana’s envelope for the next three years is $1.5billion,” he said.
IMF Bailout: Why Countries Turn to Fund for Loans During Economic Crisis
Earlier, YEN.com.gh reported that several countries have turned to the International Monetary Fund (IMF) during a crisis for emergency financing to help stabilise their struggling economy.
Like many nations with troubled economies, Ghana engaged the Fund in the past for financial aid.
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