<<Print>>

Financial Analyst, Sydney Casely Hayford has expressed surprise at the International Monetary Fund (IMF's) volte-face on Ghana�s real debt-to-Gross Domestic Product (GDP) ratio following its initial assessment of the country's economic situation. According to the Financial Analyst, he is in agreement with the earlier submission by the Deputy Director, Fiscal Affairs Department of IMF, Sanjeev Gupta when he said Ghana�s debt-to-GDP ratio was higher than what the government had presented as part of the bailout talks with the Bretton Woods institution. The IMF staff is reported to have stated that the country�s debt profile is over 70 percent of GDP and not 35 percent as claimed by the Bank of Ghana. Speaking on Oman Fm's Morning Show, Mr. Casely Hayford admitted the response from Mr. Gupta was not IMF's official position on Ghana�s debt and the GDP growth, but insisted that the available reports from Controller and Accountant General�s Department and Ministry of Finance mid-year review to Parliament on 16th July 2014, makes the IMF 71 percent projection on point. �There are only two figures involved in this calculation and the denominator for GDP lies with the Ghana Statistical Service (GSS) which is undisputed. The nominator however lies with the Central Bank, the Ministry of Finance (MOFEP) and the Controller and Accountant General�s (CAGD) offices. Additional figures to complete the debt burden can be referenced from the CAGD�s published reports for 2013 and after��mid-year review of the budget statement and economic policy presented to Parliament on 16th July 2014 also support the earlier figure��my calculation is around 67 or 69 percent depending on the GDP growth. So for me, what he [Gupta] said was pretty accurate except that he didn�t have the courage of conviction to be able to stick to his word and that is what we have now�, he asserted. Meanwhile, the program sensitive bureaucrats at the International Monetary Fund (IMF) have placed the figure at 56% from the earlier 71% and rephrased Gupta�s glib remark as their estimate by the end of 2015. But with the current figure, the Financial Analyst said it is controversial as it will have mega spine implications for the people at the IMF as it has not shown how he [Gupta] arrived at his 71%, insisting the 71 percent ratio is on point taking into account the available statistics and the state of events in the country. He presumed however that the turnaround by the IMF about Ghana�s debt is a ploy to maintain the negotiation process between them as the earlier figure can upset the government to back out of the intended bailout. �They both want the program to go on and so they can�t afford to allow anything to affect the negotiation�.they are retracting it now to say the earlier figure was a projected figure at the end of 2015; and that seems to appease the government to some extent because it was very difficult to accept�, he asserted.