IEA Archives - Wontumi Online

27 Jan

IEA Calls For Budget To Address Huge Legacy Debt And Restore Financial Sustainability

CUD WontumiBusinessIEA

The Institute of Economic Affairs (IEA) is calling for a budget that specifies a comprehensive plan to address the huge legacy debt in the energy sector while returning the sector to financial sustainability. In its bi-monthly Economic Outlook, the economic think tank stated that the budget should also include measures to ensure stable and less costly power to enhance the competitiveness of the economy. Additionally, the IEA emphasized the need for a budget that acknowledges the lack of fiscal space to support economic development due to limited government revenue. “While taking steps to increase tax revenue, it is also important to…

01 Jun

Economic Reforms And Financial Discipline Required To Strengthen The Cedi – Kwakye

wontumionlineBusinessBoG, IEA

Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has said that fiscal discipline is needed to strengthen the Cedi. Bloomberg reports that Ghana’s currency is poised for one of the strongest rallies globally after the West African nation’s $3 billion pact with the International Monetary Fund (IMF) gave investors hope it can climb back from last year’s debt crisis. https://twitter.com/thebankofghana/status/1664180069961539584?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1664180069961539584%7Ctwgr%5E645d1a80ae63f619a85779c84a075fcb03041a8f%7Ctwcon%5Es1_&ref_url=https%3A%2F%2F3news.com%2Feconomic-reforms-and-financial-discipline-required-to-strengthen-the-cedi-kwakye%2F The cedi was the best performer worldwide against the dollar in the runup to the IMF deal, which was sealed mid-month. That was the latest in a series of violent swings since Ghana unilaterally suspended payments…

23 May

Gov’t Must Be Careful IMF Deal Doesn’t Become Its Undoing – IEA’s Kwakye Warns

wontumionlineBusinessIEA, imf

The Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has warned the government to be careful that the $3 billion bailout approved by the International Monetary Fund (IMF) does not lead to problems. Dr Kwakye said this is one of the most stringent IMF programmes he has ever encountered because the prescribed conditionalities leave no room for the government’s discretion. “The government has boxed itself into a straightjacket. This is one of the most stringent programmes l have ever encountered. “The prescribed policies and conditionalities leave no room for discretion. Gov’t must be careful that the programme…

11 May

We Need A Strong Legal System To Support Currency Board – IEA

wontumionlineBusinessCurrency Board Lite System, IEA, leagl system

The Institute of Economic Affairs (IEA) is calling for a strong legal system to support the Currency Board (CB) Lite System to achieve its goals. It believes a strong legal system is key to support the board particularly the enforcement of the applicable rules. “A strong legal system is key to support the board, particularly the enforcement of the applicable rules. It is essential because a currency board arrangement derives much of its credibility from the changes required in the Central Bank law”. The IEA had earlier proposed the establishment of a CB to limit the Central Bank lending to…

11 May

Establish Independent Parliamentary Budget Office To Monitor Monetary, Fiscal Systems – IEA

wontumionlineBusinessDr. John Kwakye, IEA

The Institute of Economic Affairs (IEA) has called for the establishment of an Independent Parliamentary Budget Office to monitor Ghana’s monetary and fiscal systems. This, the institute say will ensure a stricter monetary and fiscal management systems to transform the economy. Addressing a group of Civil Society Organizations, Director of Research, Dr. John Kwakye said a parliamentary budget office is necessary in assessing and estimating the cost of government projects and programmes. Dr. Kwakye explained that a parliamentary budget office will be different from the current Fiscal Council in the country. He pointed out that the parliamentary budget office will…

27 Apr

Why Neglect IMF’s Advice On Fiscal Adjustment ? – Dr. Kwakye To Government

wontumionlineBusinessDr. John Kwakye, IEA

The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye has questioned government’s unwillingness to work on the fiscal adjustment as suggested by the International Monetary Fund (IMF) in order to reach a debt sustainability level. According to him, government is rather focusing its attention on the debt restructuring with less concentration on the fiscal adjustment. This, he believes could prolong the commitment and assurance of the Paris Club and G-20 Members to give an assurance for a debt restructuring. Dr. Kwakye pointed out that the IMF has always made suggestions to the government of Ghana…

25 Jan

Domestic Debt Exchange: Exclude Rural Banks, Individuals – IEA To Government

wontumionlineBusinessDomestic Debt Exchange, Dr. John Kwakye, IEA

The Institute of Economic Affairs (IEA) is asking the government to exclude rural banks, individual bondholders and pension funds from the Domestic Debt Exchange programme given their relative financial vulnerability. According to the Director of Research, Dr. John Kwakye, government should be seen to lead the way in burden-sharing in cutting expenditure, especially spending on goods and services, projects and flagship programmes. He explained that since contributions from rural banks are intended for less privileged individuals, pursuing their hard-earned money is needless. “Rural banks again? Because they take monies from the poor people and invest in government bonds, why will…

21 Nov

2023 Budget Is “A Make Or Break One” – IEA

wontumionlineBusiness2023 Budget, IEA, Monetary Policy

The Institute of Economic Affairs (IEA) has described the 2023 Budget as a make or break one”, saying if it fails to get it right, near-irreversible damage could be done to the economy. According to the institute, the budget must not be business as usual. It therefore wants a budget that will demonstrate consideration for a new fiscal policy paradigm capable of delivering sustained macroeconomic stability and growth as well as indicate an ambitious revenue mobilisation profile. “It must break from the past and chart a new course to restore macroeconomic stability, while laying the foundation for long-term sustainable growth…