Finance

How delayed IMF engagement pushed Ghana into debt

An economist at the University of Ghana, Godfred Bokpin, has expressed concern about Ghana’s financial crisis, noting that the country’s fiscal issues were evident as early as 2021.

Speaking on Morning Starr with Naa Dedei Tettey, he remarked, “The data was quite clear that Ghana was heading dangerously,” and criticized the government for not addressing the situation sooner. He emphasized that the delay in seeking assistance from the IMF only worsened the crisis: “Government delay in reaching out to the IMF actually compounded the situation.”

According to him, if the government had acted proactively in late 2021, “the debt exchange or the debt restructuring would have been avoided.” In comparison, “Kenya proactively reached out and escaped the haircut.”

He explained that the situation escalated by December 2022 when Ghana’s domestic debt exchange was completed, yielding fiscal savings of approximately 61 billion cedis. However, the analyst highlighted the heavy toll on those who lent money to the government, stating, “while it represents fiscal savings to the government, that is a cost to bondholders.” He pointed out that many affected individuals had “worked so hard over the years,” and their investments in government bonds led to significant financial strain, especially for “pensioners, individual bondholders, and body corporates.”

Reflecting on the impact, he lamented, “That was pain, that was distress,” contrasting the government’s relief with the hardships faced by ordinary citizens. Some had “taken their pensions, the lump sum, and invested it in there,” only to have their investments tied to long-term bonds.

 

Source: starrfm.com.gh

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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