Ghanaians should be prepared for a difficult Christmas this year, warns Prof. James Atta Peprah, the dean of the University of Cape Coast's School of Economics.
Over the weekend, a Ghanaian team consisting of representatives from the Bank of Ghana and the Ministry of Finance returned from yet another round of discussions with the International Monetary Fund (IMF) over a program that the Fund would support.
Officials from the IMF Mission Team are anticipated to return to Accra in the upcoming weeks, according to a statement from the Ministry.
Prof. Atta Peprah warned that because Ghana would not receive the anticipated $3 billion bailout, the economic climate will remain difficult as we approach Christmas. He likened the IMF bail-out to insulin for diabetes patients.
"As Christmas approaches, Ghanaians should prepare for tougher circumstances because it appears unlikely that we will receive funding from the IMF. You may picture what will happen between the end of December and the beginning of January 2023 as the deal has not yet been finalized and negotiations are still going on.
Prof. Atta Peprah also advised Ghana to lower its economy in order to qualify for more affordable concessional loans.
"Sri Lanka's economy has been downgraded so they can get access to loans at lower interest rates. Middle-income nations are not eligible for concessional loans, thus I wonder if Ghana may have its economy lowered since, in theory, we have already been demoted. Compared to extended credit facilities, concessional loans are less expensive and have far more flexible terms.