Indiscipline took Ghana to IMF, we must sustain gains – Ato Forson
Finance Minister Dr. Cassiel Ato Forson has warned against economic indiscipline, cautioning that Ghana could slip back into financial crisis if reforms introduced under the International Monetary Fund (IMF) Extended Credit Facility programme are not maintained.
According to him, government’s priority is to ensure that current economic policies remain sustainable in order to avoid a return to periods that forced the country to seek emergency bailout support from the IMF.
“What we seek to do is to make sure that whatever we do today is sustainable, so that we don’t go back to the good old bad days, where we get to an emergency situation that we have to go to the IMF,” he stated.
Dr. Forson explained that measures are being implemented to prevent Ghana from repeatedly depending on external bailout programmes, stressing that although the country does not anticipate another IMF bailout, policymakers must remain disciplined and focused.
“We are putting in place measures so that we don’t have to go for a bailout. We believe that we do not have a need to go for a bailout every day, but it doesn’t mean we should let our guard down. It means that we don’t have to be complacent in order to work harder,” he said.
He noted that maintaining macroeconomic stability would be essential in attracting private sector investment and sustaining long-term economic growth.
“We need to sustain the gains of economic stability to be able to attract private investment into our country and be able to build on it for sustainable growth,” he added.
The Finance Minister also stressed that the end of the IMF programme should not be viewed as an opportunity for loose fiscal management.
“So, bailout is out of the equation,” he stated, while warning that poor economic discipline could easily reverse the progress achieved so far.
Reflecting on Ghana’s past economic difficulties, Dr. Forson said indiscipline has consistently contributed to the country’s repeated return to IMF-supported programmes.
“When I was a deputy minister here we often said that as for indiscipline, there’s always a price for indiscipline,” he remarked.
He explained that reckless fiscal practices, including the rapid depletion of reserves, have historically undermined economic recovery efforts.
“Clearly, indiscipline is what has landed Ghana on a number of bailout programs, because largely, we depleted our reserves so fast, and then we enjoyed the benefits of consolidation so quickly, and in the end, we’re going back to where we don’t have to be,” he said.
Dr. Forson emphasised that government’s focus now is to build on the progress achieved under the IMF-supported programme and establish a stronger foundation for long-term economic stability and growth.
“What we seek to do going forward is to build on the momentum that this ECF has created for all of us and sustain it for a very long time so that the country can benefit from it,” he added.
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