Ghana Says “Never Again” After Its 17th International Monetary Fund (IMF) Bailout Program

Ghana, which a few years ago opted for a $3 billion bailout from the International Monetary Fund (IMF), has vowed to never find itself in such a position again, where it needs a bailout from the IMF.

Ghana has officially exited its 3 billion dollar IMF Extended Credit Facility — and both President John Mahama and Finance Minister Cassiel Ato Forson are now telling the world it will be the last bailout Ghana ever takes. Forson told Parliament that Ghana has moved “from supplicant (begging) to partner.” But Ghana has made this exact promise before — in 2014, and again in 2018. So what is different this time? And why, if Ghana has “left” the IMF, is it stepping straight into a new 3-year Policy Coordination Instrument Agreement that keeps the International Monetary Fund looking over Ghana’s shoulder until 2029?

Ghana has just said no further bailouts from the International Monetary Fund (IMF), never again. But the same Ghana saying “Never Again” to the IMF have said “Never Again” before on multiple occasions. Ghana said “Never Again” to the IMF in 2014, and said it again in 2018. And in both times, Ghana was back at the IMF negotiating (begging) for a bailout within a few short years. The real question is not that Ghana made a bold statement on the international stage, the real question is whether anything has changed. Is anything different and has anything changed when Ghana said “Never Again” to the IMF in 2014 and 2018?

Ghana has gone to the IMF 17 times begging for a financial bailout, do you really believe this is going to be the last?

Ghana has not left the International Monetary Fund program.

Also here is the fine print details that Ghana is leaving out of their “Never Again” propaganda speech:

Ghana is under the “Policy Coordination Instrument Agreement” of the IMF. The “Policy Coordination Instrument Agreement” means that the IMF will not loan any monetary assistance or financial bailout to Ghana (this is what the Ghana government is soo proud for the world to see). But, this still means that the IMF is still very much involved in Ghana’s economic and financial policies. For the next 3 years, until 2029, the IMF will still continue reviewing, overseeing and managing Ghana’s public finances, economic policies and debt. Ghana will still have to meet specific IMF targets on its public deficit and debt. Ghana will have to report to the IMF on how it is running its state-owned companies. The IMF will continue to assess and review Ghana’s economic and financial performance to determine if Ghana is complying with the IMF’s “Policy Coordination Instrument Agreement.” Yes the flow of IMF monetary loan and assistance will stop flowing into Ghana, but the supervision and micromanagement of Ghana’s economic and financial policies will continue and the International Monetary Fund will still have the final-say on Ghana’s economic and financial policies.

The “Policy Coordination Instrument Agreement” is not a monetary assistance bailout program. It is a surveillance, supervision and management by the International Monetary Fund on Kmtyw (Black African countries’) economic and financial policies. For example, let’s look at Senegal. In January of 2020, Senegal entered into the same kind of arrangement and agreement with the IMF; a 3-year, non-financing “Policy Coordination Instrument Agreement” with the IMF. Senegal was also saying the same things Ghana is saying today, “we don’t need the IMF”, “never again will Senegal go back to the IMF for monetary bailouts,” “all Senegal need is the IMF guidance and supervision.” Then when the plandemic hit in 2020, Senegal was scrambling for a bailout. And within a year, April 2021, Senegal was negotiating (begging) with the IMF for a new financial bailout, worth over $650 million dollars. But, I thought the “Policy Coordination Instrument Agreement” was to prevent Senegal from seeking financial bailout from the IMF. The “Policy Coordination Instrument Agreement” was supposed to supervise and manage Senegal finances and economic policies from seeking loans, bailouts and financial assistance from the IMF.

When Ghana tells us that it has stopped receiving IMF loans, bailouts, and financial assistance from the IMF because it has adopted the “Policy Coordination Instrument Agreement” with the IMF, don’t believe it. Yes, as long as no major catastrophe happens, then it might be possible. But when you have the IMF controlling, managing and overseeing your public finances, economic policies and debts, a financial crisis and bailout is definitely inevitable, it is going to happen. And when you have an economy that is built on consumer spending and debt services, that is a high risk to put a promise of “Never Again” on. (An economy built on debt services is a system where a major share of your financial resources, capital, revenue and economic productivity is directed toward paying off existing loans rather than funding new growth, innovation, or public services. An economy built on debt servicing refers to a financial economic system where economic growth, corporate expansion, and consumer spending are primarily driven by borrowing money, and where a massive sector of the economy is dedicated to managing and profiting from that debt. In such a system, money is lent into existence by central and commercial banks, creating a perpetual cycle where new debt must continuously be issued just to cover the compounding interest of older debts. While this model can artificially accelerate prosperity during low-interest-rate environments, it creates structural vulnerabilities as the cost to service the debt begins to outpace real economic productivity). (Ghana depends on 70% of its national revenue on consumer spending and debt services).

Ghana have went to the IMF 17 times for financial assistance and loan bailouts.

Ghana have said “Never Again” before. They said “Never Again” in 2014 and said it again in 2018. A promise made, especially a promise made several times, is a promise that has to be kept. And we all know it is not going to end the way Ghana said it will. Ghana is eventually going to go back to the IMF, begging for a financial loan, bailout and assistance, sooner or later.

Ghana has not left the IMF loan assistance program. Ghana has agreed to a 3-year surveillance, supervision arrangement with the IMF, that keeps the IMF overseeing and managing Ghana’s financial and economic policies, until 2029. The monetary loan bailouts will stop (for now, until 2029), but the oversight, supervision and micromanagement of Ghana’s finances is still going to be in IMF hands and IMF approval. Senegal has already shown Ghana that when a major catastrophe happens, the “Policy Coordination Instrument Agreement” is not going to prevent a bailout from the International Monetary Fund or the World Bank, from happening.

Depending on the International Monetary Fund, the World Bank or any other foreign loan assistance program, keeps a country circling in the same drain of debt.

The only way out of debt is having your own domestic oversight and management, your own fiscal discipline, and your own financial institutions, watching over your own finances.

The answer for Kmt=Abibiman=Farafina=Black (African countries) is that we build our own and manage our own financial institutions and loan assistance program in-house. And when we have a major crisis or financial emergency we don’t go begging to the IMF , the World Bank or any other foreign financial lender for monetary assistance.

In conclusion, the IMF is still very much involved in Ghana’s finances and economic policies. The IMF has not gone anywhere. The IMF isn’t going anywhere. The IMF is very much involved in Ghana’s finances and economic policies.

Don’t believe the “Never Again” propaganda speech from Ghana.