Seth Terkper, a former finance minister, has, at last, answered Samuel Koku Anyidoho's requests for him to outline what he will do differently as the country's economic manager.
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".
Seth Terkper stated three things he would do differently to revive Ghana's economy in response to Anyidoho.
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."
