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Nairaland Forum / Nairaland / General / Politics / Foreign Affairs / IMF To Penalise Ghana For Figures Manipulation. (1560 Views)
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IMF To Penalise Ghana For Figures Manipulation. by Explicit01: 9:48am On Oct 14, 2014 |
The recent discovery of supposed massaged economic figures by the International Monetary Fund (IMF) could lead to sanctions against the Government of Ghana. A similar incident was said to have occurred in 2000 earning government some punishment in 2001. Economic analysts have hinted that the supposed massaging of economic figures was deliberate and intended to hide the true state of affairs of the country from the Bretton- Woods and also to cover up the gravity of the rot in Ghana’s economy. On Wednesday, Sanjeev Gupta, Deputy Director, Fiscal Affairs Department of IMF, said Ghana’s debt profile was over 70 percent of GDP and not 55 percent as claimed by the Bank of Ghana (BoG). “First of all, the debt-to-GDP ratio in Ghana is 71 percent, not 60 percent so it is much higher than you mentioned.” Ghana has been caught in huge debt repayment three times than the proceeds from oil revenue, a situation the IMF said was unsustainable. An IMF delegation, led by Joël Toujas-Bernaté, was in the country to collect information before the actual negotiations during the annual meetings. Seth Terkper, Minister of Finance, is leading a government delegation to the International Monetary Fund (IMF)/World Bank Annual Meetings. The team includes Dr Kofi Wampah, Governor of the Bank of Ghana, Chairman of the Finance Committee of Parliament and officials from the Ministry of Finance and the Bank of Ghana. The delegation attended the Commonwealth Finance Ministers Meeting, which precedes the IMF meetings, as well as other meetings with the Vice President of the World Bank and the G24 Ministerial Meetings. Ghana experienced financial crisis in late 2000. It recorded a rapidly depreciating currency, sharply rising inflation, burgeoning public debt and a substantial depletion of foreign exchange reserves. The primary cause was loss of control over public expenditure and government borrowing, especially in the second half of the year before the presidential elections. The fiscal deficit in cash terms reached 9.7 percent of GDP for the year. Owing to shortfalls in donor disbursements, the deficit was financed almost entirely by domestic borrowing. The result was a destabilization of the economy: 40 percent growth in broad money, a 50 percent depreciation of the cedi, and a tripling of the inflation rate to over 40 percent at end- 2000. The domestic government debt stock rose to almost 29 percent of GDP, and official reserves fell to only three weeks of imports. A breakdown in expenditure management and control systems during 2000 also led to a build-up in new domestic arrears in addition to cash expenditure overruns. The full extent of these arrears remains to be verified, but it’s estimated at 1.4 percent of GDP. Delays in aid inflows further complicated the payment of government obligations and led to the creation of external payment arrears on debt service amounting to US$89 million by end-2000. Ghana’s public and publicly guaranteed external debt stood at US$5.9 billion (about 119 percent of GDP) at end-2000. The finances of several key parastatals deteriorated along with those of the central government. Failure to adjust petroleum prices fully for rising crude oil costs and a depreciating currency left the Tema Oil Refinery (TOR) with a total short-term debt of 2.5 trillion (9 percent of GDP) at end-2000. Almost half of this was debt to domestic banks, in particular to Ghana Commercial Bank (GCB), posing a major risk to the solvency of the bank. Similarly, electricity and water rates were kept artificially low throughout 2000, leaving the Electricity Company of Ghana (ECG), Volta River Authority (VRA), the electricity generator and the Ghana Water Company Limited (GWCL) with sizeable additional debts.www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=330108 |
Re: IMF To Penalise Ghana For Figures Manipulation. by Nobody: 9:56am On Oct 14, 2014 |
What a pity our noisy neighbor 6 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by mondob2k(m): 10:02am On Oct 14, 2014 |
After all d hype abt Ghana's economy... So this how they arrive at thier 'our economy is better than yours' status abi? God don catch dem 2 Likes 1 Share |
Re: IMF To Penalise Ghana For Figures Manipulation. by overhypedsteve(m): 10:06am On Oct 14, 2014 |
We really need to start sending our used cloths and shoes to the ghanian senators. And later to the people 2 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by Dbryan: 10:08am On Oct 14, 2014 |
Eiya i pity them,i hope their economy improve,but them lyk to they make mouth 1 Like |
Re: IMF To Penalise Ghana For Figures Manipulation. by masseratti: 10:09am On Oct 14, 2014 |
mondob2k:why do you guys find joy in the misery of others? It's pathetic. May the good lord lead Ghana out of debt like he led isreal out of Egypt. 1 Like |
Re: IMF To Penalise Ghana For Figures Manipulation. by Ozonna(m): 10:11am On Oct 14, 2014 |
Hope this won't be another E - war thread. We have our own problem coming with the prices of oil coming down in the international market due to international politics and we've not diversified the economy yet. Let's hope and pray that our economic team have plans to reduce the effect on the population. |
Re: IMF To Penalise Ghana For Figures Manipulation. by Nobody: 10:12am On Oct 14, 2014 |
IMF should lock up Nigeria in Prison if they penalize Ghana.. we have the most distorted economy in the world, GDP figures, Salaries, Census, Elections everything 2 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by Explicit01: 10:12am On Oct 14, 2014 |
masseratti:you are wasting your time praying for people that are comfortable with their statusquo. They are very ok with the state of their country, they don't need your prayers. 3 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by Sparrow13: 10:13am On Oct 14, 2014 |
Their economy is cursed. 2 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by Sparrow13: 10:18am On Oct 14, 2014 |
voltron:
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Re: IMF To Penalise Ghana For Figures Manipulation. by Nobody: 10:28am On Oct 14, 2014 |
A debt of 71% of GDP is very bad. Factoring in compound interest, it is frightening. The painfull thing is that African leaders borrow to put in their pocket. 1 Like |
Re: IMF To Penalise Ghana For Figures Manipulation. by Nobody: 10:30am On Oct 14, 2014 |
[quote author=Sparrow13 post=27129328][/quote] GEJ's d1ck must taste so good to u boy |
Re: IMF To Penalise Ghana For Figures Manipulation. by mondob2k(m): 10:31am On Oct 14, 2014 |
masseratti: I am not 'finding joy'in thier misery. If they r sick why hide it by manipulating figures? how will help come? now instead of help, they are getting sanctions.. 2 Likes |
Re: IMF To Penalise Ghana For Figures Manipulation. by mainheart(m): 10:33am On Oct 14, 2014 |
must Ghana followed Nigeria 4 everything. continue to the measure your shoulder with us instead of a country like Cameroon, Ethiopia and like, till u collapse ur economy finish. that weed position never do una. |
Re: IMF To Penalise Ghana For Figures Manipulation. by Canme4u(m): 10:42am On Oct 14, 2014 |
Hmmm!!! Eleyi gidigan ooh!!! |
Re: IMF To Penalise Ghana For Figures Manipulation. by Tayeni(m): 10:43am On Oct 14, 2014 |
Nigeria(GEJ) should learn from this because our situation right now is similar to when Ghana started her borrowing. "Ghana experienced financial crisis in late 2000. It recorded a rapidly depreciating currency, sharply rising inflation, burgeoning public debt and a substantial depletion of foreign exchange reserves. The primary cause was loss of control over public expenditure and government borrowing, especially in the second half of the year before the presidential elections." . Negative examples can be learned from too. Borrowing is not always the answer. There are other ingenious ways to get what you want. Overdoing it will enslave the next generation. 1 Like |
Re: IMF To Penalise Ghana For Figures Manipulation. by Sparrow13: 11:04am On Oct 14, 2014 |
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Re: IMF To Penalise Ghana For Figures Manipulation. by GHKWAME1: 11:11am On Oct 14, 2014 |
mondob2k: A Chartered Economist has called for an unqualified apology from the International Monetary Fund (IMF) over the controversy it has sparked regarding the level of Ghana’s public debt stock. The Bretton Woods institution through Sanjeev Gupta, the Deputy Director of IMF's Fiscal Affairs Department, disputed Bank of Ghana’s figure regarding the country's debt-to-GDP ratio, stressing at a press conference ahead of the Annual Meetings that it is 71 per cent instead of 60 per cent. “First of all, the debt-to-GDP ratio in Ghana is 71 percent, not 60 percent so it is much higher than you mentioned,” Mr Gupta told a journalist last week. But IMF explained on its website that the figure is a projection into 2015 and not the current one of 56 per cent. “The best thing they need to do is to apologise to the people of Ghana,” Dr John Gatsi said on TV3’s Midday Live on Monday, October 13. http://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=330169 1 Like |
Re: IMF To Penalise Ghana For Figures Manipulation. by politricks: 11:16am On Oct 14, 2014 |
Ghanians what do u hav to say. |
Re: IMF To Penalise Ghana For Figures Manipulation. by Nobody: 11:18am On Oct 14, 2014 |
Jonathannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn |
Re: IMF To Penalise Ghana For Figures Manipulation. by Pricelesss(f): 11:18am On Oct 14, 2014 |
Later on, Obama and his cohorts would claim that Ghana is better than Nigeria. Until US President Ogbeni Obama, Apologizes to GEJ and Nigerians about his senseless statement, I and my fellow Nigerians wouldn't forgive him. |
Re: IMF To Penalise Ghana For Figures Manipulation. by docsholz(m): 12:57pm On Oct 14, 2014 |
Pricelesss:Your forgiveness isn't required |
Re: IMF To Penalise Ghana For Figures Manipulation. by paniki(m): 5:49pm On Oct 14, 2014 |
Most European countries and America have debt-to-GDP ratio that approaches 100%. Others such as Greece and Japan are approaching 200%. But I understand that this is about cooking numbers. |
Re: IMF To Penalise Ghana For Figures Manipulation. by GreenandGold: 9:48am On Oct 15, 2014 |
masseratti: Religion is the reason why some other people are in debt.... Remember your pastors who like saying "borrow money in faith"? God never asks people to borrow things, leave Him out of it and simply pay your debts. |
Re: IMF To Penalise Ghana For Figures Manipulation. by nellyelitz(m): 5:18pm On Oct 15, 2014 |
voltron:is high time u stop waching ur radio and listening to ur tv... |
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