Gov't's quick action prevented more pressure on BoG when NDC took over - Terkper
Seth Terkper, former Finance Minister, said on PM Express Business Edition that the current administration inherited a deeply distressed economy. He said, "We inherited a situation where debt was suspended and not paid, and we risk being kicked out of the IMF program with disastrous conditions." He stated that the government took office when confidence in Ghana's debt market had collapsed.
Mr. Terkper stated that the ratings of Ghana's bonds were "junk." He also said, "We inherited a situation where, let's say, the fiscal was just in a mess, where inflation was high with a huge deficit." Mr. Terkper defended the early actions taken by the Finance Ministry.
According to Mr. Terkper, "The Minister for Finance moved in quickly to mop up loose government cash." He argued that this move "prevented the Bank of Ghana, or saved the Bank of Ghana from continuing to finance government."
Quick Summary
Seth Terkper, former Finance Minister, says the current government inherited a distressed economy. He claims swift action was needed to stabilise finances - but what impact did these moves really have?
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