Former Finance Minister, Mr Seth E. Terkper, has advised the government not to completely exit the three-year extended credit facility (ECF) programme with the International Monetary Fund (IMF) when ends next year.
Instead, Mr Terkper said the government should “seriously consider” migrating onto the IMF’s alternative Policy Support Instrument (PSI), when the ECF, meant to restore macroeconomic stability, ends its natural course in 2018.
Under a PSI, Ghana will be entitled to technical advice and support from the fund without a borrowing arrangement.
Senegal, Tanzania, Uganda and Rwanda are among the growing list of countries enjoying such supports under the fund’s PSI.
In an article due to be published on the Monday, July 24 edition of the Daily Graphic, the former minister said a PSI will help send correct signals to Ghana’s development partners (DPs) and the international financial markets, ensure clarity of policy choices and brighten the economy’s prospects.
It will also help entrench fiscal discipline, he added.
“Ghana is at a policy cross-roads but with bright prospects for the economy from past policies and investments.”
“However, we have long-standing policy slippages and fast-changing global environment to contend with.”
“Hopefully, the mid-Year Review (due to be presented on July 25) will offer clear policy options for the nation to move forward.”
“A mid-road or transitional step, such as an IMF PSI, appears best until we are on firm grounds,” Mr Terkper said in the 1,300-word article.