Browsing: Ghana IMF Program

The government is targeting to achieve a debt-to-Gross Domestic Product, (GDP), ratio of 55% by 2028 despite the exemption of pension funds from the debt exchange programme.

According to the governor of the BoG, Dr Ernest Addison, “the country has fundamental issues that we have to address such as fiscal problems, very large deficits which is not getting the adequate financing and therefore central bank was providing the financing on a temporary basis. Hopefully by the end of this year, that would not be there to complicate the inflation management issue”.

This is expected to boost investors confidence in the economy as well as in create hope of shoring our foreign reserves soon.

According to the fund, it is possible to change the terms of support request of the government to better suited terms that solves the current challenge the economy faces. It thereby indicated that increasing revenue mobilisation is critical for debt sustainability while safeguarding social spending.

The global financial institution maintains that, Ghana will only reach a staff-level agreement with the IMF by the first quarter of 2023.

Although, the Fund has noted that, it is too early to make any pronouncement as the negotiation is yet to climax but it can assure that, some social intervention programs will be protected.

The financial support which is expected to come in tranches, according to Fitch, at least US$1.0 billion dollars may be released to Ghana government by the end of the first quarter of 2023.

The IMF also welcomed the fiscal adjustments envisaged in the 2021 budget, while stressing that fiscal consolidation was needed to address debt sustainability and rollover risks.

TUC in a statement signed by its Secretary General, Dr Yaw Baah kicking against the IMF bailout said IMF programmes have only imposed unnecessary hardships on Ghanaians with practically nothing to show for them.

As government has initiated discussion with the International Monetary Fund (IMF), many Ghanaians and policy analyst expect tough economic policy changes, especially with cutting down on expenditure and possible cancellation of many social intervention programs as well as how to increase domestic revenue generation.