IMF cash delay to push inflation & credit up

inflation on a blue background with a magnifier

The Institute of Statistical, Social and Economic Research (ISSER) is cautioning cost of credit as well as inflation will shoot up in the coming months if there is a further delay in the release of the IMF bailout cash.

ISSER argues, government’s decision to borrow more to meet expenditure like wages in an election year will yield high interest rated debts. Ghana is yet to receive the third tranche of its financial assistance from the IMF; almost three months after the mission concluded its third review.

A Deputy Finance Minister Mona Quartey has told Citi Business News government has submitted data on restructuring the country’s energy sector which should prompt the release of the bailout cash.

Speaking to Citi Business News however, an economist with ISSER, Professor Robert Darko Osei maintained the high interest would also have dire consequences if unchecked.

 

Source: citifmonline