Seth Terkper outlines what he will do to get Ghana’s economy on track
Former Finance Minister Seth Terkper has finally responded to calls by Samuel Koku Anyidoho’s calls on him to tell Ghanaians what he intends to do differently if he was the one managing the economy of Ghana.
Anyidoho in a tweet said, “I just want simple answers to my questions about the economy: My senior brother, Seth Tekper, given the opportunity, what would you do differently? Pls pls pls convince me I beg u”.
Responding to Anyidoho, Seth Terkper listed three things he will do differently to put Ghana’s economy back on its feet.
He said “Hi Koku, doing well? Ready to engage, been discussing a few (also what we did). 3 egs: i) if you borrow, learn to repay (Sinking Fund & debt/ratings wahala); ii) crisis are inevitable, prepare, w/ fields (Stabex/Contingency Fund, my crisis is bigger than yours is fallacy)”.
“3rd, if tax revenue is stagnant, reduce expenditure, however lofyvor well-meaning (recall E-schools in 2016?). Can’t borrow perpetually to finance them. Be targeted when you receive $6b (unprecedented, not even HIPC flows) for a crisis like COVID, topping 3 oil fields.”
“1st, negotiations were long in coming and not even the WB could have predicted the BRIC/EM meltdown in 2015. 2nd, Saudi etc withdrew funds from the markets for domestic needs at the time. 3rd, Ghn’s 2015 budget was based on a healthy $99 pbl, which crashed to sub-$35 pbl”
“4th, recall we suspended pricing for 2 wks, then realized some major non-resident holders of Ghn’s domestic Bonds, due in 2-to-3 mths, were bidding high or not bidding at all (potential arbitrage?). Clearly, we face a high local rate hike to rollover, @ about 30% plus?”
“5th, got 2 oilfieds in 2017 but failed to (i) put more money in Sinking Fund for credible buyback or swap/exchange (as w/ 1st Bond); (ii) messed PRG with PDS saga (blame MCC too for exit?). 6th we messed up using ESLA to pay IPPs; and yet 7th kept borrowing with no repmt plan.”
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