A former Trade Minister, Dr. Ekow Spio Garbrah, believes the extension of the International Monetary Fund (IMF) program by the government, should lead to lower interest rates for businesses in the country.
According to him, such a move will rather enhance trading activities in the country, while inviting other countries to trade with Ghana.
Government has extended its IMF program to April 2019, to enable it to meet set targets.
Ghana in 2015, entered into an agreement for $918 million to support the economy.
This extension has led to numerous agitations from various business groups as they believe the IMF program hampers employment opportunities among others.
But in an interview with Citi News, Dr. Spio Garbrah maintained that the programme can inure to the benefit of the business community.
“.. If your country is perceived by the international community to be a credible country from an economic and finance development and finance management point of view, then in theory, you are also a good destination for both private equity and are also a good destination for people who want to send their goods by way export…”
The benefits of the programme will also extend to favorable interest rates that will benefit businesses, Dr. Spio Garbrah added.
“Theoretically, if an IMF programme leads to you getting resources at a lower cost, that should also lead to lower interest rates for businesses who can use the lower interest rates to borrow, manufacture and to trade,” the former Trade Minister explained.
In the latest extension, IMF approved an additional 94 million dollar disbursement for the extension, which implied that freeze on government sector employment will linger on.
By: Jessica Aryorkor Aryee/citifmonline.com/Ghana
Published on 16 September 2017 | 4:14 pm at Source