US supports IMF bailout, believes economy will bounce back in about 12 months

The US government has expressed its support to Ghana's decision to seek financial bailout from the International Monitory Fund (IMF).

The US government believes that decision and other measures including the Millennium Challenge Compact and the coming on stream of the Atuabo Gas plant, it is confident that the country's economy will bounce back within six to 12 months.

The US Ambassador to Ghana, Gene Cretz made this known during an interaction with the media in Accra Monday on US-Ghana relationship in 20014 and also what the country should expect in 2015.

According to Mr Cretz, the US “support the fact that the Ghanaian government chose to go to the IMF for assistance. It's important that Ghana's medium to long term economic trajectory remains contingent on government's leadership to overcome this current physical challenges.”

“As Ghana makes transition to being an established middle-income country, international donors such as the IMF will be important partners in helping to bolster Ghana's credibility with international investors and donors,” he noted.

The US Ambassador observed that, “When an agreement is reached between the two parties, we believe it will be an important step towards ensuring Ghana's positive medium and long-term growth trajectory.”

Ghana, he added, has brighter prospects for the oil and gas sector noting that the Atuabo Gas project, which is currently in its testing stages and the sale of cocoa will boost the country's economy.

“I think if you take the confluence of all those different events, I think when we look down the road six months to a year from now, the Ghanaian economy will be positioned in a better place for the real improvement to take off,” he said.

Mr Cretz noted that country has experienced economic challenges over the past few years and he believes that the kind of confluence of positive events that are taking place, the Ghana's economic prospects look much brighter than it has been in the past.    

“The MCC second compact which is really a vote of confidence in Ghana because there are very few countries that will get a second compact and that second was the result of the commitments that were fulfilled by Ghana in the first MCC compact,” he said.

The US Ambassador added that, “this one is $498 million and we hope that it is going to transform the electric power sector. I think that is going to be a critical game changer for the future of Ghanaian economy.”    

  Story by Ghana | Myjoyonline.com | Ernest Dela Aglanu (Twitter: @delaXdela / Instagram: citizendela)