IMF has no credibility – Avedzi avers

General News of Wednesday, 26 December 2018

Source: Myjoyonline.com

2018-12-26

Deputy Minority leader, James Avedzi

Deputy Minority leader in Parliament, James Avedzi is questioning the credibility of the International Monetary Fund, the same institution, the NDC, while in government had run to for credibility.

According to the Ketu North MP, the Fund, with its head Christine Largarde are in no position to tell the true state of the Ghanaian economy.

In an interview on PM Express Mr Avedzi said, Ghanaians, more than any other person are in the best place to determine the state of the economy.

“Christine Largarde cannot come from Washington and come and tell us Ghana is on course. The people, the ordinary man on the street know what is happening to him or her,” he said.

When host of PM Express Evans Mensah asked him if he was questioning the integrity of the IMF, he responded: “I am, I am!”

Largarde in a recent assessment of Ghana’s economy had painted an impressive picture of Ghana’s economy and applauded the efforts of government in stabilizing the economy.

In 2014-2015 the then NDC government had faced serious challenges managing the economy with the currency depreciating at a faster rate.

Ghana was among the countries in the world with the fastest rate of depreciation at the time.

Inflation had shot up from the single digit to double digits with the economy shrinking to about 3.2% in 2016.

The then NDC in a policy decision said it lacked credibility so it signed a three-year agreement with the IMF for credibility and a sum of over $900million to stabilize the sinking economy.

In 2016, the party lost elections to the NPP led by Nana Akufo-Addo whose party has since been managing the economy.

The macro-economic indicators appear to be taking better shape with inflation going down to single digit over the last three months.

Economic growth has seen a steady rise hovering around 5-8% with the country’s fiscal deficit improving significantly.

These indicators appear to have impressed the IMF with its Managing Director Christine Largarde praising the managers of the economy.

Recently there was a debate as to whether or not a $2 billion transaction entered into between the Ghana government and a Chinese company Synohydro was a loan.

The Minority in Parliament insisted it was a loan and wrote to the IMF demanding its verdict on the matter.

The IMF responded to the Minority clarifying that the arrangement by the NPP government with the Chinese firm was not a loan.

That clarification did not sit well with the Minority. The positive appraisal by Christine Largarde of the economy under the NPP appears to have angered Avedzi all the more.

“What Christine Largarde is telling us is not the true position of what is happening on the ground,” he said, adding “if the economy of Ghana is true I must feel it in my pocket.”

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