The delegation of representatives from the International Monetary Fund (IMF), which arrived in Ghana on September 26, 2022, have concluded their talks with the Ghanaian government.
Mr Stephane Roudet, IMF Mission Chief to Ghana, who led the team on Friday, October 7, said his organization and Ghana’s government had constructive discussions on policies aimed at restoring macroeconomic stability.
According to him, the two parties are “laying the foundation for stronger and more inclusive growth.”
“We reaffirm our commitment to support Ghana in these challenging times, consistent with the IMF’s policies,” Mr Roudet added.
During the second period of engagement, the IMF/World Bank and the government undertook a debt sustainability analysis (DSA) to inform the programme negotiations, since a framework for any debt operations had yet to be established.
Again, the Fund and the government are now reviewing the country’s medium-term macro- fiscal framework.
This is looking at a three-year expenditure plan which sets out the medium-term expenditure priorities and budget constraints, as well as focuses on sectors that need to be developed and refined.
Mr Roudet also noted that “key areas of focus included ensuring public finance sustainability while protecting the vulnerable, bolstering the credibility of monetary and exchange rate policies to reduce inflation and rebuild external buffers, preserving financial sector stability, and steps to encourage private investment and growth, including by improving governance, transparency, and public sector efficiency.”
Negotiations between the IMF and Ghana are far from over.
Finance Minister, Ken Ofori-Atta, has revealed that the government and the Fund will carry on with their negotiations on an economic programme for Ghana in Washington, DC, the United States of America (U.S.A.). This is expected to take place this week.
While speaking at the signing of a $1.13 billion cocoa syndicated loan in Accra, the sector minister asserted that “we are very confident that the discussions that we are having with the Fund will put us in the right landing zone.”
In July 2022, President Akufo- Addo directed Mr Ofori-Atta to commence official engagement with the IMF. This came at a time when the government had opposed suggestions for an IMF programme to bail Ghana out of its economic woes.
Not long after, an IMF staff team led by Carlo Sdralevich visited Accra to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by a Fund lending arrangement.
The IMF team met with Vice President Bawumia, Finance Minister Ofori-Atta, and the Governor of the Bank of Ghana, Dr. Ernest Addison. The team also met with the Parliament’s Finance Committee, Civil Society Organizations (CSO), and development partners, including UNICEF and the World Bank, to engage on social spending.
It affirmed the assertion that Ghana’s economic crisis has been exacerbated as a result of the COVID-19 pandemic and the Russia-Ukraine war.
Source: The Independent Ghana