Here's a good indication of where the IMF's priorities lie. A few days after disbursing $46 million in new loans to Ghana, it fines the country $39 million for providing misleading financial information. Now, we're all for accurate information disclosure (an area in which the IMF's track record is quite limited), but is the most appropriate punishment for failure on this score to take away 85% of the money lent to a struggling economy a few days before? (The fine must be paid now, but the people will be paying that $39m back for years.) The IMF's priority is not development, nor people. It's obedience. To the neoliberal model, and to the IMF itself.
Soren Ambrose 50 Years Is Enough Network
IMF slaps 39-million-dollar fine on Ghana for lying Wednesday, 04-Jul-2001 11:10AM by Agence France-Presse
ACCRA, July 4 (AFP) - The International Monetary Fund (IMF) has slapped a 39-million-dollar fine on Ghana for misrepresenting the state of the economy, an official was quoted as saying Wednesday.
Finance Minister, Yaw Osafo Maafo, was quoted by radio stations as saying that the penalty was over misinformation made by the previous government of Jerry Rawlings for the period August 21 to December 31, 2000.
Osafo-Maafo, speaking to journalists late Tuesday on his arrival from the United States, where he had accompanied President John Kufuor, said the IMF did not heed Accra's plea for a penalty waiver.
The present government only took power in January after 19 years of rule by Rawlings.
Osafo Maafo said: "the IMF rejected our plea on the grounds that under IMF rules the reporting of inaccurate information attracts a levy on the defaulting country."
"A number of African, Caribbean and Pacific countries which were part of the discussions fought on behalf of Ghana for the waiver but the Fund said waivers on non-observance of the prior action and performance criterion cannot be granted," he said.
Osafo Maafo said Ghana would have to pay back the amount in two installments this year.
IMF disbursements to Ghana over the past three years is about 285 million dollars.
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UN Integrated Regional Information Network June 30, 2001 Posted to the web July 1, 2001
The International Monetary Fund approved on Thursday an additional disbursement of US $46 million under Ghana's three-year Poverty Reduction and Growth Facility programme, bringing to US $66 million the amount the country will be able to borrow in the short term for projects. Ghana's poverty scheme, initiated in 1999, benefits from a US $239-million credit line. So far the West African country has used US $89 million, the IMF said in a statement.
"The Fund commends the authorities' progress in revamping the development and poverty reduction strategy with the broad participation of civil society, and looks forward to seeing a full Poverty Reduction Strategy Paper later in 2001," IMF's Deputy Managing Director, Eduardo Aninat said in the statement.
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