Ghanaian economist Professor Stephen Adei has criticised former President John Mahama’s announcement of his intention to renegotiate the International Monetary Fund (IMF) deal if he’s re-elected.
Prof Adei expressed concerns that Mr Mahama’s comments could undermine ongoing negotiations with external creditors.
In an interview with Reuters, Mr Mahama stated that he intends to renegotiate the terms of the IMF bailout and increase local ownership of future oil and mining projects if he wins the December election.
However, Prof Adei accused Mr Mahama of pandering to public sentiments without considering the detrimental effects such a decision could have on current agreements with external creditors and the broader economic implications for the country.
During an election year, politicians will say anything they think will make people like them… what he is saying is of little relevance because the IMF – the money they are giving us is very little. The essence of the IMF is that its position influences what the bilateral and multilateral creditors will do.
So if there is any negotiation, it is not with the IMF. It is going to the creditors – both bilateral and multilateral – to negotiate the money,” Prof Adei explained.
