Former President, John Dramani Mahama has said the government in its bid to salvage deteriorated economy has to accept the harshest International Monetary Fund conditionalities.

According to him, the consequences of the haircuts as part of the IMF conditionalities are grave for the financial sector.

Address the National Democratic Congress (NDC) European Chapters Conference at Amsterdam, Holland Mr. Mahama indicated that the financial health of Ghanaian banks has eroded adding that this will undermine the financial sector’s performance with attendant job losses.

“Ultimately, too little was done too late, as our economy had so deteriorated that an IMF programme could only be secured by accepting the harshest conditionalities. To obtain an IMF programme, Ghanaians have paid a disproportionate price. Domestic bondholders have been given severe and painful haircuts and will be deprived of substantial interest due to them in 2023.

“Insurance companies and pension funds invested in government bonds will also suffer, just as individuals who depend on pension payments for survival will suffer,” Mr. Mahama stated.

He continued: “In addition to this already hostile economic environment, multiple taxes have been slapped on Ghanaians in the last two years alone. Over 23 other tax measures will make life even more unbearable for our people. Steep increases in the cost of utilities are increasing the burden on businesses and individuals.

“Import duties and excise duties have shot through the roof. No wonder the Tema and Takoradi Ports have lost volumes while the Togo and Benin ports continue to be busy and receiving goods that should have come through our ports,” he said.

The former President stated that one of the burning topics for discussion in Ghana is the rate at which the nation is “losing our (health) professionals, trained at great expense, to other countries.”

“I sympathise with the Ghanaian youth! Their feeling of despair and hopelessness is unprecedented in our history. They are now looking for the slightest opportunity to leave our shores in search of greener pastures."

“The question we should ask ourselves is, how will we bring back HOPE in the Ghanaians in the face of their daily challenges? As the most viable alternative, we in the NDC have demonstrated the capacity to rise to the occasion by our record in government. In the past, we have reset our country’s trajectory and returned it to an appreciable state of health. We have a duty to our country to lead the charge for change again and bring relief to the longsuffering people of Ghana,” he stated.