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Tag: IMF

  • Second and third reviews of Ghana’s IMF programme slated for June and November – Mohammed Amin

    Second and third reviews of Ghana’s IMF programme slated for June and November – Mohammed Amin

    Finance Minister-designate, Dr. Mohammed Amin Adam, has noted that the next two reviews of Ghana’s US$3bn International Monetary Fund (IMF)-supported Post Covid-19 Programme for Economic Growth (PC-PEG) will take place in the second and fourth quarters of the year.

    The minister-designate emphasized that the approval of the 2nd Review by the IMF Executive Board, expected in June 2024, would lead to the release of the 3rd tranche of US$360 million.

    This would bring the total disbursements under the programme to US$1.56 billion.

    “The 3rd Review has been programmed for November 2024,” he added.

    While engaging the press today, the minister-designate reported substantial strides in meeting the objectives set out IMF programme.

    “The Ministry of Finance is working with the BoG in preparation for the IMF 2nd Review Mission. Preliminary assessment undertaken by MoF and BoG shows that we are on course to meet most of the targets under the Programme.”

    This comes after the successful completion of the first review of the IMF programme on January 19, 2024.

    “During the 2nd Review, the IMF mission will engage the authorities in technical and policy discussions to enable them to assess Ghana’s performance on programme objectives, the 6 Quantitative Performance Criteria (QPCs), the 3 Indicative Targets (ITs), 1 Monetary Policy Consultation Clause (MPCC), and the Structural Benchmarks (SBs) with respect to end Dec 2023 targets. They will also review performance towards upcoming QPCs, ITs, and SBs,” he added.

  • Ghana tops African countries in Concessional Lending debt to IMF

    Ghana tops African countries in Concessional Lending debt to IMF

    As of January 31, 2024, Ghana retained its position as the foremost debtor to the International Monetary Fund (IMF) in Africa concerning Concessional Lending and Debt Relief Trust.

    The country’s indebtedness to the Fund amounted to 2.088 billion Special Drawing Rights, equivalent to $2.77 billion.

    According to the IMF’s Quarterly Finances for January 2024, Ghana’s outstanding concessional loans to the institution had increased compared to the figures recorded in July 2023. This surge followed Ghana’s receipt of a $600 million bailout package from the IMF in both June 2023 and January 2024, aimed at revitalizing its economy amid prevailing economic challenges.

    Ghana’s concessional loan outstanding to the IMF represented 11.0% of Africa’s total indebtedness to the tune of SDR 18.804 billion. Additionally, Ghana demonstrated a commitment to debt repayment by remitting SDR 61 million, equivalent to $81.13 million, to the IMF.

    The loans extended to Ghana by the IMF fall under concessional lending, featuring low-interest financing. Specifically, the PRG Trust offers loans under concessional terms to qualifying low-income member nations.

    Meanwhile, the Democratic Republic of Congo and Kenya maintained their positions as the second and third-largest debtors to the IMF in Africa, respectively, as of January 1, 2024.

  • Brace yourself, economic reforms will be painful – IMF urges Ghanaians

    Brace yourself, economic reforms will be painful – IMF urges Ghanaians

    The International Monetary Fund (IMF) has indicated that Ghana’s journey to economic stability will be challenging but remains hopeful about the country’s ability to overcome current difficulties.

    The IMF has advised Ghanaians to manage their expectations of the government and continue to make sacrifices as the country implements its US$3 billion loan-support program.

    Following the COVID-19 pandemic, Ghana’s economy has faced challenges, leading the government to introduce several taxes and levies, including a COVID-19 Health Recovery levy, Electronic Transactions Levy (E-levy), and Sanitation and Pollution levy.

    Recently, the government announced a 15 percent Value Added Tax (VAT) on residential electricity consumption and an emissions levy as part of its revenue generation efforts.

    However, the announcement sparked public outrage, prompting the government to suspend the taxes for discussions with the IMF on the way forward.

    During a media engagement as part of her first visit to Ghana, Ms. Kristalina Georgieva, Managing Director of the IMF, urged Ghanaians to support the government’s “painful reforms.”

    She expressed optimism that Ghana’s ongoing reforms would ultimately benefit its citizens.

    Recounting the experience of her country some three decades ago, Ms Georgieva said, “My own country [Bulgaria] in the 90s went through a much more severe collapse.

    “Here [in Ghana], we’re talking about inflation of about 54 per cent. Inflation in Bulgaria was over 1000 per cent, and the measures to bring back macroeconomic measures were extremely painful,” she said.

    She mentioned that she was in discussions with the government to ensure that the implemented policies are beneficial and aid in reducing the country’s debt levels while solidifying macroeconomic gains.

    “We understand that the people in Ghana have been impacted and for the low-income household, any additional cost is a problem that is very difficult to bear. We have to look at the fiscal position of government, there are different measures that we can adopt to achieve this,” Ms Georgieva stated.

    She observed that Ghana’s current economic challenges, while not dramatic, necessitated the government’s steadfast focus on implementing the loan-support program.

    The IMF Managing Director emphasized that with strong economic fundamentals, sound macroeconomic policies, good governance, and minimal corruption, Ghana could achieve a resilient economy and a high standard of living.

    She urged the government to prioritize reducing expenditure, increasing revenue generation, and investing more in education and infrastructure development nationwide.

    “What we know is that the government cannot spend more than it generates, and it’s much better to spend money on education and infrastructure than for debt service,” Ms Georgieva said.

    Ghana is currently executing a three-year US$3 billion Extended Credit Facility (ECF) program with the IMF as part of the country’s Post-COVID-19 Programme for Economic Growth (PC-PEG).

    The program’s objectives include restoring macroeconomic stability and debt sustainability, enhancing resilience, and establishing a basis for more robust and inclusive growth.

    To date, Ghana has received US$1.2 billion in two installments from the IMF and is slated to conduct a second review of the program’s implementation in April 2024.

  • Check excessive spending by establishing fiscal council – IMF tells gov’t

    Check excessive spending by establishing fiscal council – IMF tells gov’t

    Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has called for the creation of a fiscal council in Ghana to protect macroeconomic stability and ensure responsible management of government fiscal policy.

    During an interview on Citi TV’s Point of View with Bernard Avle, Georgieva stressed the significance of having an independent and credible fiscal council to advise the government on avoiding excessive spending.

    “We do need to have anchors and then stick to that. Yes, the two notes of caution. One, we do need to have anchors and then stick to them. For Ghana, what we are proposing is 55% net present value debt to GDP and 18% max the share of debt service into government revenues. Anchor your situation in a clear, stable manner.

    “And two, we recommend that Ghana takes a very serious look at how the fiscal situation in the future can be stable. So we don’t go up and down again. And we are recommending fiscal council, reputable people, independent, able to say objectively this line of spending, yes and this one, no.”

    Ghana is now close to signing a Memorandum of Understanding (MoU) with bilateral creditors as part of the restructuring of debts owed to these lenders.

    Ghana after defaulting on most of its overseas debt in December 2022 after servicing costs soared, has restructured most of its local debt and is pushing for a deal with holders of about $13 billion in international bonds.

    Ghana’s economy has started to recover since the government last year secured a $3 billion loan programme with the IMF, and in January reached a deal to restructure $5.4 billion of loans with its official creditors.

  • Accept LGBTQ community and Ghana will flourish – IMF Boss

    Accept LGBTQ community and Ghana will flourish – IMF Boss

    Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has emphasized the significance of inclusive society, particularly in response to Ghana’s Parliament passing the anti-LGBTQ bill.

    Speaking on the Point of View with Bernard Avle on Monday, March 18, she voiced support for a community that embraces all irrespective of their sexual orientation, race, ethnicity, while insisting that greater inclusivity contributes to a nation’s overall success.

    “I understand that people in Ghana have taken the bill to the court. All I can say is that a more inclusive society is a more successful society. You want Ghana to flourish, make it so that everybody can contribute to the fullest of this country.”

    On Wednesday, February 28, Parliament unanimously passed the anti-LGBTQ+ bill after completing the third reading. The bill has been a subject of intense debate and discussion since its introduction to the legislature three years ago.

    Proponents argue that it is necessary to uphold cultural and religious values, while opponents argue that certain provisions violate human rights and promote discrimination.

    Since its passage, many opponents have expressed their displeasure, with some civil society groups threatening legal action should President Akufo-Addo assent to the bill for it to become law.

    President Akufo-Addo has withheld his accent as the constitutionality of the bill is being contested at the Supreme Court.

    On the show, the IMF boss attributed Ghana’s recent economic challenges to a combination of factors, including the impact of the COVID-19 pandemic and fiscal imprudence during the 2020 election period.

    Georgieva emphasized the importance of drawing lessons from past experiences and applying them to future policy-making.

    She underscored the effectiveness of robust macroeconomic and financial governance in navigating economic uncertainties.

    Georgieva stressed the necessity of implementing strong fiscal and monetary strategies capable of withstanding global financial pressures and fostering sustainable growth.

    “The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.

    “We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people. But it was also the excessive spending during the general elections period. Learn lessons from the past, apply for the future,” she quoted by Citinewsroom.com to have said.

  • An inclusive society will make Ghana flourish – IMF boss on anti-LGBTQ bill

    An inclusive society will make Ghana flourish – IMF boss on anti-LGBTQ bill

    Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has emphasized the significance of inclusivity, particularly in response to Ghana’s Parliament passing the anti-LGBTQ bill.

    Speaking on the Point of View with Bernard Avle on Monday, March 18, she voiced support for a more inclusive society, highlighting that greater inclusivity contributes to a nation’s overall success.

    “I understand that people in Ghana have taken the bill to the court. All I can say is that a more inclusive society is a more successful society. You want Ghana to flourish, make it so that everybody can contribute to the fullest of this country.”

    On Wednesday, February 28, Parliament unanimously passed the anti-LGBTQ+ bill after completing the third reading. The bill has been a subject of intense debate and discussion since its introduction to the legislature three years ago.

    Proponents argue that it is necessary to uphold cultural and religious values, while opponents argue that certain provisions violate human rights and promote discrimination.

    Since its passage, many opponents have expressed their displeasure, with some civil society groups threatening legal action should President Akufo-Addo assent to the bill for it to become law.

    President Akufo-Addo has withheld his accent as the constitutionality of the bill is being contested at the Supreme Court.

    On the show, the IMF boss attributed Ghana’s recent economic challenges to a combination of factors, including the impact of the COVID-19 pandemic and fiscal imprudence during the 2020 election period.

    Georgieva emphasized the importance of drawing lessons from past experiences and applying them to future policy-making.

    She underscored the effectiveness of robust macroeconomic and financial governance in navigating economic uncertainties.

    Georgieva stressed the necessity of implementing strong fiscal and monetary strategies capable of withstanding global financial pressures and fostering sustainable growth.

    “The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.

    “We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people. But it was also the excessive spending during the general elections period. Learn lessons from the past, apply for the future,” she quoted by Citinewsroom.com to have said.

  • Leave COVID-19, uncontrolled spending during 2020 elections worsened Ghana’s economic crisis – IMF

    Leave COVID-19, uncontrolled spending during 2020 elections worsened Ghana’s economic crisis – IMF

    Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has attributed Ghana’s recent economic challenges to a combination of factors, including the impact of the COVID-19 pandemic and fiscal imprudence during the 2020 election period.

    Speaking on the Point of View with Bernard Avle on Monday, March 18, Georgieva emphasized the importance of drawing lessons from past experiences and applying them to future policy-making.

    She underscored the effectiveness of robust macroeconomic and financial governance in navigating economic uncertainties.

    Georgieva stressed the necessity of implementing strong fiscal and monetary strategies capable of withstanding global financial pressures and fostering sustainable growth.

    “The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.

    “We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people. But it was also the excessive spending during the general elections period. Learn lessons from the past, apply for the future,” she quoted by Citinewsroom.com to have said.

    Georgieva also emphasized the significance of inclusivity, particularly in response to Ghana’s Parliament passing the anti-gay bill.

    She voiced support for a more inclusive society, highlighting that greater inclusivity contributes to a nation’s overall success.

    “I understand that people in Ghana have taken the bill to the court. All I can say is that a more inclusive society is a more successful society. You want Ghana to flourish, make it so that everybody can contribute to the fullest of this country.”

  • Keep reducing inflation, making progress in debt restructuring – IMF tells Ghana

    Keep reducing inflation, making progress in debt restructuring – IMF tells Ghana

    The International Monetary Fund (IMF) has emphasized the importance of fiscal prudence and economic reforms for Ghana’s long-term prosperity.

    Managing Director of IMF, Kristalina Georgieva, highlighted the need to build on the progress achieved under the three-year, three billion-dollar extended credit facility. She emphasized the importance of promoting inclusive growth through these measures.

    “Your growth is better expected, your inflation is lower than expected, the progress in debt restructuring has been faster than expected and now the task is to cement what has been achieved and do it with the unity of this country”.

    During a meeting with President Akufo-Addo, Madam Georgieva acknowledged the strength of Ghana’s economy but cautioned the government to remain vigilant to maintain the ongoing recovery.

    “It is the year to bring confidence in Ghana domestically and internationally at the level it was before. It is possible because we are seeing a world slightly better, so the economic attributes are better, and the critical resource of money will go where confidence in the capacity to perform is highest. So Ghana can be in this place, as it was before. We need to stay the course, Ghana has achieved in a short time of the programme – good indicators”, she stressed.

    President Akufo-Addo highlighted the positive outcomes of Ghana’s decision to seek a balance of payment support from the International Monetary Fund (IMF).

    He credited the recent decline in inflation and the stability of the local currency to the IMF support programme, expressing satisfaction with the results of the bailout.

    The President emphasized that despite challenging economic circumstances, the decision to seek IMF support in July 2022 had proven beneficial and contributed to a noticeable turnaround in Ghana’s economy.

    “The dire circumstances in which we were at the time that we took that very difficult decision and where we are today is a very clear testimony that our decision to seek your support is a decision that was correct, and we have had some benefits from it”, the President pointed out.

  • IMF bailout has been beneficial to Ghanaians – Akufo-Addo

    IMF bailout has been beneficial to Ghanaians – Akufo-Addo

    President Akufo-Addo has stated that Ghana’s decision to seek assistance from the International Monetary Fund (IMF) is yielding positive results.

    He emphasized that the conditions under which Ghana entered the program are steadily improving, and the country remains committed to adhering to the program’s terms.

    These remarks were made by the President during a meeting with the head of the IMF, Kristalina Georgieva, who visited him in Accra on Sunday.

    “The decision we made in July 2022 to come and seek your support for the difficult economic circumstances that we had, as far as I am concerned, is a decision that already has paid off.

    “It has paid off in terms of a clear turnaround that we are seeing in our economy,” President Akufo-Addo stated.

    He also emphasized that Ghana has reaped significant benefits from its engagement with the IMF.

    “The dire circumstances in which we were, at the time that, we took that very difficult decision and where we are today, is a very clear testimony that our decision to seek your support is a decision that was correct, and we have had some benefits from it,” he added.

    During the meeting, IMF chief Kristalina Georgieva remarked that investor confidence in Ghana’s economy is slowly rebounding.

    In 2023, Ghana secured a $3 billion IMF extended credit facility (ECF) after then Minister of Finance, Ken Ofori-Atta, was authorized by President Akufo-Addo on July 1, 2022, to commence formal negotiations with the IMF to secure a balance of payment support and resolve Ghana’s economic crisis impacted by the COVID-19 pandemic and the geopolitical armed conflict between Russia and Ukraine.

    Ghana’s three-year-IMF programme is in its first year of implementation, with the nation so far, receiving a total of $1.2 billion from the IMF in two payment tranches of $600 million each.

    It is expected that during Madam Georgieva’s stay in Ghana, the IMF and the government officials will be seeking ways through which they can consolidate collaboration to see Ghana through her current programme with the Fund.

  • Our decision to seek IMF support in 2022 was a correct one – Akufo-Addo tells IMF boss

    Our decision to seek IMF support in 2022 was a correct one – Akufo-Addo tells IMF boss

    President Akufo-Addo has stated that Ghana’s decision to seek assistance from the International Monetary Fund (IMF) is proving beneficial.

    He noted that the conditions that led to Ghana entering the program are steadily improving, and the country is committed to fulfilling the program’s requirements.

    The president made these remarks during a meeting with the head of the IMF, Kristalina Georgieva, in Accra on Sunday.

    “The decision we made in July 2022 to come and seek your support for the difficult economic circumstances that we had, as far as I am concerned, is a decision that already has paid off.

    “It has paid off in terms of a clear turnaround that we are seeing in our economy,” President Akufo-Addo stated.

    He also emphasized that Ghana has greatly benefited from its decision to engage with the IMF.

    “The dire circumstances in which we were, at the time that, we took that very difficult decision and where we are today, is a very clear testimony that our decision to seek your support is a decision that was correct, and we have had some benefits from it,” he added.

    During the meeting, IMF chief Kristalina Georgieva noted that investor confidence in Ghana’s economy is slowly being restored.

    In 2023, Ghana secured a $3 billion IMF extended credit facility (ECF) after then Minister of Finance, Ken Ofori-Atta, was authorized by President Akufo-Addo on July 1, 2022, to commence formal negotiations with the IMF to secure a balance of payment support and resolve Ghana’s economic crisis impacted by the COVID-19 pandemic and the geopolitical armed conflict between Russia and Ukraine.

    Ghana’s three-year-IMF programme is in its first year of implementation, with the nation so far, receiving a total of $1.2 billion from the IMF in two payment tranches of $600 million each.

    It is expected that during Madam Georgieva’s stay in Ghana, the IMF and the government officials will be seeking ways through which they can consolidate collaboration to see Ghana through her current programme with the Fund.

  • IMF boss arrives in Ghana to engage Akufo-Addo, others over economic growth, AI Conference

    IMF boss arrives in Ghana to engage Akufo-Addo, others over economic growth, AI Conference

    Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has arrived in Ghana, marking her first official visit to the country.

    Madam Kristalina Georgieva was accompanied by the Director of Africa Department at the Fund, Abebie Selassie, Stéphane Roudet, IMF Mission Chief for Ghana and other officials as she expects to hold talks with President Akufo-Addo and Vice President Dr Mahamudu Bawumia.

    Madam Georgieva will also meet with the Minister of Finance, Dr. Mohammed Amin Adam, and the Governor of the Bank of Ghana, Dr Ernest Addison.

    As part of her itinerary, the IMF boss will on Monday, March 18, 2024, attend an Artificial Intelligence (AI) conference jointly organised by the Ministry of Finance and her organisation, the International Monetary Fund under the theme, “AI as a Catalyst to Transform Economies in Sub-Saharan Africa”.

    Madam Georgieva will also be meeting with selected Civil Society Organisations (CSOs) and women groups.

    In 2023, Ghana secured a $3 billion IMF extended credit facility (ECF) after then Minister of Finance, Ken Ofori-Atta, was authorized by President Akufo-Addo on July 1, 2022, to commence formal negotiations with the IMF to secure a balance of payment support and resolve Ghana’s economic crisis impacted by the COVID-19 pandemic and the geopolitical armed conflict between Russia and Ukraine.

    Ghana’s three-year-IMF programme is in its first year of implementation, with the nation so far, receiving a total of $1.2 billion from the IMF in two payment tranches of $600 million each.

    It is expected that during Madam Georgieva’s stay in Ghana, the IMF and the government officials will be seeking ways through which they can consolidate collaboration to see Ghana through her current programme with the Fund.

  • IMF, Finance Ministry to host Artificial Intelligence conference in Accra

    IMF, Finance Ministry to host Artificial Intelligence conference in Accra

    The Ministry of Finance and the International Monetary Fund (IMF) are set to host an Artificial Intelligence (AI) summit in Accra on Monday, March 18, 2024.

    The summit aims to explore the challenges and opportunities that AI presents for developing countries like Ghana.

    Financial and information technology experts believe that AI has the potential to transform economies in Africa, including Ghana. However, they also acknowledge that AI could pose challenges for economic growth and development in countries south of the Sahara, given the continent’s unique characteristics, including its young population.

    While the risk of immediate AI-related disruptions may be lower in emerging markets and developing economies (EMDEs) than in advanced economies, where up to 60% of jobs could be affected, EMDEs are also less equipped to harness the benefits of AI effectively.

    The AI summit, themed “AI as a Catalyst to Transform Economies in Sub-Saharan Africa,” will take place at the Kempinski Hotel in Accra. Participants will include Dr. Mohammed Amin Adam, Minister for Finance, and Madam Kristalina Georgieva, Managing Director of the IMF.

    The summit will feature a panel discussion on the challenges and opportunities of AI for emerging economies, with a focus on Ghana’s digitalization and AI readiness. The discussion will also explore strategies for harnessing AI for positive outcomes and its role in the 4th industrial revolution alongside technologies like cloud computing and the internet.

    The panel will include Ursula Owusu-Ekuful, Minister for Communications & Digitalisation; Madam Kristalina Georgieva, Managing Director of the IMF; Dr. Patrick Awuah, President of Ashesi University; and Dr. Jason Hickey, Head of Google’s AI Research Centre.

  • Standard Bank predicts 2024 economic growth to exceed IMF’s estimated 2.8%

    Standard Bank predicts 2024 economic growth to exceed IMF’s estimated 2.8%

    Africa’s largest bank, Standard Bank, projects that Ghana’s economy will strengthen by 3.2% in 2024.

    This forecast surpasses the International Monetary Fund’s earlier prediction of 2.8%. Among the 18 countries assessed by Standard Bank, Ghana’s anticipated growth rate ranks as the 16th highest.

    The bank attributes this growth primarily to the services sector of the economy.

    However, potential obstacles such as adverse weather conditions, excessive debt, and geopolitical tensions may pose challenges to this growth trajectory.

    “Notably, unfavourable weather concerns, renewed geopolitical risks, and ongoing debt sustainability challenges constraining the fiscal capacity to spur growth, are the primary downside risks for economic growth in SSA [Sub Saharan Africa] for 2024”.

    Prior to the onset of Covid-19 in 2019, Ghana’s economy was expanding at a steady rate of 5% annually.

    However, recent data from the Ghana Statistical Service indicates a growth of 2.0% from July to September 2023, driven mainly by increased activity in the services and agriculture sectors.

    This figure represents a decrease compared to the 2.7% growth recorded during the same period in 2022.

    Elsewhere in Africa, Ethiopia is projected to experience substantial growth in 2024, nearing 10%. According to the International Monetary Fund, Sub-Saharan Africa as a whole is expected to see its economy expand by approximately 4.0% in 2024, a notable increase from the 3.3% growth recorded in 2023.

  • Our relationship with Ghana hasn’t changed despite passage of anti-LGBTQ+ bill – IMF

    Our relationship with Ghana hasn’t changed despite passage of anti-LGBTQ+ bill – IMF

    In light of the recent approval of the Human Sexual Rights and Ghanaian Family Values Bill by Parliament, the World Bank Group has asserted its enduring commitment to its longstanding partnership with Ghana.

    This statement is intended to address and dispel any speculations that the World Bank Group might reduce its support in terms of aid and development assistance to Ghana.

    There have been growing concerns about potential financial challenges for Ghana, especially with warnings from the Finance Ministry indicating a potential loss of over $3 billion in World Bank funding for various programs and projects if the bill becomes law.

    However, a spokesperson from the World Bank has clarified that the institution does not view the recently passed bill as a reason to alter its collaboration with Ghana on development programs.

    The spokesperson underscored the ongoing productivity of the partnership between the World Bank and the Republic of Ghana.

    “The World Bank Group has a longstanding and productive relationship with Ghana,” the spokesman said.

    Addressing inquiries regarding the Human Sexual Rights and Ghanaian Family Values Bill, the World Bank stated its policy of refraining from commenting on specific legislation, especially one that has not been signed into law.

    “The Bill has not yet been signed into Law. We generally do not comment on Bills”.

    At present, it remains uncertain whether the World Bank will take any punitive measures if the bill is fully enacted.

  • We will comment on anti-LGBTQ+ bill after it becomes a law – IMF

    We will comment on anti-LGBTQ+ bill after it becomes a law – IMF

    The International Monetary Fund (IMF) has announced that it will provide comments on the Proper Human Sexual Rights and Ghanaian Family Values Bill after it is officially signed into law.

    The IMF states that its evaluation will specifically focus on the economic and financial consequences of the legislation.

    In a released statement, the IMF emphasized its commitment to diversity and inclusion as integral values. “We cannot comment on a bill that has not yet been signed into law and whose economic and financial implications we have yet to assess.”

    The institution underscores its internal policies prohibiting discrimination based on personal characteristics, including gender, gender expression, or sexual orientation.

    “Diversity and inclusion are values that the IMF embraces.”

    “Our internal policies prohibit discrimination based on personal characteristics, including but not limited to gender, gender expression, or sexual orientation. Like institutions, diverse and inclusive economies flourish,” the statement from the Fund added.

    The IMF asserts that diverse and inclusive economies thrive, aligning with its principles.

    This statement follows the recent passage of the bill by Ghanaian lawmakers on March 28, with support from both the ruling party and the opposition.

    The legislation aims to criminalize LGBTQ+ activities, along with their promotion, advocacy, and funding.

    Offenders may face jail terms ranging from 6 months to 5 years, depending on the nature of the violation.

    Acknowledging the significance of the situation, the IMF states that it is closely monitoring developments in Ghana. However, it refrains from commenting on a bill that has not been signed into law, pending a comprehensive assessment of its economic and financial implications.

    Ghana, facing economic challenges and seeking an IMF bailout, may see uncertainties in securing the third tranche due to the recent legislation.

    The country’s dollar bonds have experienced a decline, ranking as the second-worst performers in an index monitoring emerging-market sovereign hard-currency debt.

    All 14 of Ghana’s dollar notes in the gauge saw a drop in value, with bonds maturing in 2034 experiencing the most significant impact.

    Pressure is mounting on President Akufo-Addo to assent to the bill amid these developments.

  • LGBTQ not part of Ghana’s IMF agreement – Prof. John Gatsi

    LGBTQ not part of Ghana’s IMF agreement – Prof. John Gatsi

    Economics professor and dean of the University of Cape Coast Business School, Professor John Gatsi, has contended that LGBTQ issues were not a stipulation for Ghana when seeking the International Monetary Fund’s (IMF) external credit facility support.

    In response to the IMF’s comments on the anti-LGBTQ+ bill, Gatsi sees these remarks as merely reflecting the organization’s interests.

    Despite the IMF emphasizing diversity and inclusion, Professor Gatsi believes Ghana’s finance ministry is being used to pressure support for the bill’s non-signing.

    He highlighted that during negotiations with the IMF, LGBTQ concerns were not part of the conditions.

    Mr Gatsi stressed that Ghana’s financial dealings involve repayable loans, with parliamentary approval being the primary condition, which has already been met.

    The finance ministry’s report to President Akufo-Addo warned of potential financial losses, estimating over US$3.8 billion from World Bank financing.

    Areas at risk include ongoing projects and negotiations, such as the First and Second Ghana Resilient Recovery Development Policy Operation and the Ghana Financial Stability Fund.

    Additionally, the ministry fears consequences for Ghana’s financial position, which heavily relies on IMF support following debt restructuring and access to foreign exchange.

    As Ghana awaits the review and approval of the third tranche from the IMF, uncertainties persist regarding the impact of the anti-LGBTQ+ bill on these financial arrangements.

    “Diversity and inclusion are values that the IMF embraces,” the Fund emphasised.

  • We are watching recent developments in Ghana closely – IMF on anti-LGBTQ bill

    We are watching recent developments in Ghana closely – IMF on anti-LGBTQ bill

    The International Monetary Fund (IMF) has declined to comment on the anti-LGBTQI+ bill passed by Parliament in Ghana because it has not yet been signed into law by President Akufo-Addo.

    The IMF stated that it has not yet undertaken an economic and financial assessment of the law’s potential impact on the country.

    This response was provided by the Bretton Woods institution in Washington DC, USA, in reply to questions from JOYBUSINESS on March 4, 2024.

    “Our internal policies prohibit discrimination based on personal characteristics, including but not limited to gender, gender expression, or sexual orientation. Like institutions, diverse and inclusive economies flourish”, the IMF said in an email.

    “We are watching recent developments in Ghana closely”, the Fund added.

    This comes at a time when President Akufo-Addo has reaffirmed Ghana’s dedication to upholding human rights, despite the recent passage of the Proper Human Sexual Rights and Ghanaian Family Values Bill, also known as the Anti-LGBTQ+ Bill.

    Speaking at a diplomatic event, he stressed that Ghana maintains its reputation for respecting human rights and following the rule of law.

    The President clarified that the Bill is currently being challenged in the Supreme Court, and until a verdict is reached, his government will not enforce any provisions of the private Member’s bill.

    Prior to this, The Ministry of Finance advised President Akufo-Addo against signing the recently passed Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill also known as the anti-LGBTQ bill.

    In a statement dated March 4, the Ministry noted that the bill, when passed into law, poses negative impacts on the country’s financial support from international organizations.

    According to the Ministry the expected $300 million financing from the First Ghana Resilient Recovery Development Policy Operation as Budget Support which is currently pending Parliamentary approval might not be disbursed by the World Bank if the bill is approved by Parliament.

    Other financial support from the World Bank Ghana risks losing include, Second Ghana Resilient Recovery Development Policy Operation amounting to US$300 million, $250 million to support the Ghana Financial Stability Fund, Disbursement of undisbursed amounts totaling US$2.1 billion for on-going projects, Preparation of pipeline projects and declaration of effectiveness for two projects totaling worth US$900million.

    In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years.

    With regards to the International Monetary Fund External Credit Facility worth $3 billion, the Ministry noted that there is no direct conditionality over its passage, however, the non-disbursement of the Budget Support from the World Bank will derail the IMF programme.

    The Ministry also warned that a derailed IMF programme will have dire consequences on the debt restructuring exercise with the Official Creditor Committee (OCC) and Eurobond holders, as well as Ghana’s long term debt sustainability.

  • Don’t approve anti-LGBTQ bill; we need money from IMF, World Bank – Finance Ministry advises Akufo-Addo

    Don’t approve anti-LGBTQ bill; we need money from IMF, World Bank – Finance Ministry advises Akufo-Addo

    The Ministry of Finance has advised President Akufo-Addo against signing the recently passed anti-LGBTQ+ Bill into law, citing potential negative impacts on the country’s financial support from international organizations.

    In a press release issued on Monday, March 4, the Finance Ministry cautioned that signing the bill could jeopardize the disbursement of the expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support), currently awaiting Parliamentary approval.

    It also warned that ongoing negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support), totaling US$300 million, could be suspended.

    The Ministry highlighted the potential loss of financial resources and the resulting financing gap in the 2024 budget as major concerns.

    To address these challenges, the Ministry recommended that the President engage with religious bodies to discuss the implications of signing the bill. It also suggested establishing a robust coalition and framework to support key development initiatives.

    “The Presidency may have a structured engagement with local conservative forces such as religious bodies and faith-based organisations to communicate the economic implications of the passage of the ‘Anti-LGBTQ‘ Bill and to build a stronger coalition and a framework for supporting key development initiative that is likely to be affected.”

    Parliament passed the bill on February 28, 2024, criminalizing LGBTQ activities and prohibiting their promotion, advocacy, and funding. Those convicted of such acts could face 6 months to 3 years in prison, while promoters or sponsors could be sentenced to 3 to 5 years.

    The bill’s approval has been met with criticism, notably from Virginia Evelyn Palmer, the United States Ambassador to Ghana, and other stakeholders.

    The UN High Commissioner for Human Rights, Volker Türk, has described the passage of bill as “profoundly disturbing.”

    A portion of the UN Human Rights statement read “I call for the bill not to become law. I urge the Ghanaian Government to take steps to ensure everyone can live free from violence, stigma and discrimination, regardless of their sexual orientation or gender identity. Consensual same-sex conduct should never be criminalized.”

    Implications-of-Anti-LBTQI-BILL_240304_082203-1Download
  • IMF deliberately sabotaging Ghana’s economy – Bagbin claims

    IMF deliberately sabotaging Ghana’s economy – Bagbin claims

    Speaker of Parliament, Alban Bagbin, has expressed concerns about the International Monetary Fund’s (IMF) role in Ghana’s economic downturn.

    He expressed skepticism about the IMF’s intentions, suggesting that the organization is manipulating situations to force Ghana to seek their assistance again.

    In his remarks during discussions with the top five schools that participated in the National Public Speaking Competition on Friday, March 1, 2024, Speaker Bagbin implied that the IMF is providing misguided advice, leading the country into economic difficulties.

    “Anytime they want Ghana to falter and return to them, they will tell their small boys to come and misadvise us. When we do the wrong thing, and we collapse, they [IMF] say, aha! That is what they do to us. Ghana, we have been there 17 times; we have not solved our problems,” he said.

    His remarks followed the IMF’s statement regarding the passage of the anti-gay bill, where the IMF reiterated its stance against all forms of discrimination.

    In May 2023, the International Monetary Fund (IMF) on Wednesday approved a $3 billion loan for Ghana, a West African country in the midst of a severe economic crisis, with the first immediate disbursement of about $600 million.

    The programme, endorsed by the IMF board, is spread over 36 months under the Extended Fund Facility.

    During the event, he also expressed concern that events held at the forecourt of the State House are posing security threats to Members of Parliament, jeopardizing their ability to carry out their official duties safely.

    “I’m sure when you were coming, you heard some noise outside. When we are busy doing our work, there are people outside who are permitted to come and make noise. By the time we go outside, they could have broken into our cars and stolen things. You talk to them; it is like they are deaf and dumb; they don’t hear. We are constrained to be able to function properly.”

  • Flashback: Ghana on track for 5th Eurobond – IMF

    Flashback: Ghana on track for 5th Eurobond – IMF

    On 15th May 2016, the then Minister of Finance, Seth Terkper, announced the country’s intention to enter the international bonds market with the goal of raising around one billion dollars.

    Despite earlier concerns from financial experts about the International Monetary Fund (IMF) withholding approval due to Ghana’s debt levels, the IMF has now given its endorsement for the issuance of Ghana’s 5th Eurobond during its review of the Extended Credit Facility program.

    Minister Terkper led a government delegation in a non-deal road show, presenting Ghana’s expanding economic prospects to potential investors.

    With parliamentary approval already secured, the government aims to secure additional funds from the global market to bolster the nation’s growing infrastructure requirements and address maturing debts.

    While the timing of the Eurobond issuance remains uncertain, Joel Toujas-Bernaté, the head of the IMF mission to Ghana, shared in a press conference that the decision would be influenced by prevailing market conditions.

    He emphasized the flexibility of adapting to market fluctuations, suggesting that if conditions are unfavorable at the beginning of the year, the government can utilize existing cash balances.

    Toujas-Bernaté reassured that the IMF supports Ghana’s ability to smoothly adapt to changing circumstances without jeopardizing financing for the year.

    “The concern about debt dynamic season is driven by the fiscal position. At the start of the year, they can use a large part of these cash balances if indeed the market conditions are not right for issuing a new Eurobond,” he said.

    “If the market conditions improve and would make issuance of a Eurobond more attractive, then the strategy may change. And it is here that I think the idea is to adapt to market conditions and the fact that the authorities have this cash,” he explained.

  • We embrace diversity and inclusion – IMF cautions Ghana against anti-LGBTQ bill

    We embrace diversity and inclusion – IMF cautions Ghana against anti-LGBTQ bill

    The International Monetary Fund (IMF) has stated that it is monitoring events in Ghana following the passage of the Proper Human Sexual Rights and Family Values Bill by Parliament.

    Commonly referred to as the Anti-LGBTQ bill, the legislation aims to criminalize LGBTQ+ activities, as well as their promotion, advocacy, and funding.

    The bill’s passage has already drawn criticism from various stakeholders and civil society organizations, including the United States Ambassador to Ghana, Virginia Evelyn Palmer.

    However, in a statement issued by the IMF and reported by Bloomberg, the global lender emphasized that its internal policies prohibit discrimination based on personal characteristics, including gender, gender expression, or sexual orientation.

    The IMF noted that, “Diversity and inclusion are values that the IMF embraces.”

    The International Monetary Fund (IMF) has stated its intention to closely observe events in Ghana in light of the passage of the Proper Human Sexual Rights and Family Values Bill. The bill, commonly known as the Anti-LGBTQ bill, aims to criminalize LGBTQ+ activities, as well as their promotion, advocacy, and funding.

    The IMF has also indicated that it will refrain from commenting on the bill until it is signed into law and its economic and financial implications are thoroughly assessed. Should the bill become law, the IMF will then assess the economic and financial implications of Ghana’s decision to pass the bill.

    Ghana has been seeking a bailout from the IMF following an economic downturn, with the first and second tranches hitting the Bank of Ghana’s account. However, the passage of the bill has cast uncertainty over Ghana’s prospects of securing the third tranche.

    In response to the news of Ghana’s anti-LGBTQ legislation, the country’s dollar bonds experienced a decline, ranking as the second-worst performers in a Bloomberg index monitoring emerging-market sovereign hard-currency debt on Thursday.

    All 14 of Ghana’s dollar notes in the gauge saw a drop in value, with the bonds maturing in 2034 experiencing the most significant impact, plummeting to 43.34 cents on the dollar, marking their lowest level since January 12.

    Meanwhile, pressure is mounting on President Akufo-Addo to assent to the bill.

  • IMF warns of economic repercussions on Ghana over passage of anti-LGBTQ bill

    IMF warns of economic repercussions on Ghana over passage of anti-LGBTQ bill

    The International Monetary Fund (IMF) has expressed its concern regarding recent developments in Ghana following the approval of a bill proposing imprisonment for individuals identifying as LGBTQ.

    In a statement from its Washington headquarters, the IMF underscored its dedication to diversity and inclusion, highlighting these principles as essential within the organization.

    The IMF emphasized its internal policies against discrimination based on personal characteristics, including gender, gender expression, or sexual orientation, noting that economies embracing diversity tend to flourish.

    The bill, passed with bipartisan support, not only criminalizes LGBTQ identification but also targets the financing of LGBTQ groups and sanctions discrimination against them. President Nana Akufo-Addo’s approval is necessary for the bill to become law.

    While acknowledging the significance of the situation, the IMF refrained from commenting on the bill until it is signed into law, stressing the importance of thoroughly assessing its economic and financial implications.

    Ghana’s financial stability, closely linked to IMF assistance amid debt restructuring, adds complexity to the situation. The IMF had agreed to release a second tranche of $600 million to Ghana earlier this year.

    Following the news of the anti-LGBTQ legislation, Ghana’s dollar bonds experienced a decline, ranking as the second-worst performers in a Bloomberg index monitoring emerging-market sovereign hard-currency debt.

    All 14 of Ghana’s dollar notes saw a drop in value, with bonds maturing in 2034 experiencing the most significant impact, reaching their lowest level since January 12.

  • When you’re broke don’t you borrow? – KT Hammond justifies Ghana’s going to IMF

    When you’re broke don’t you borrow? – KT Hammond justifies Ghana’s going to IMF

    Member of Parliament for Adansi Asokwa, KT Hammond, has justified Ghana’s decision to seek assistance from the International Monetary Fund (IMF).

    Addressing Ghanaians in Parliament after President Akufo-Addo delivered the 2024 State of the Nation Address, he noted that the move was necessary given the country’s economic challenges resulting from the COVID-19 pandemic. 

    Ghana’s engagement with the IMF has been a subject of debate, with proponents arguing that it is a necessary step to stabilize the economy and implement crucial reforms, while critics express reservations about the potential implications for national sovereignty and economic independence.

    Despite various promises made by President Akufo-Addo not to resort to IMF assistance during his tenure, Ghana ultimately found itself in a position where seeking external financial support became inevitable. 

    The decision sparked debates and raised questions about the government’s economic management strategies and its ability to fulfill electoral promises.

    However, KT Hammond is responding to such criticisms, arguing that going to the IMF was the responsible course of action to address Ghana’s economic challenges and ensure the country’s financial stability in the long term.

    “When you’re broke, don’t you borrow?” he asked. 

    He further acknowledged the economic hardships currently being experienced by Ghanaians under the current administration. However, he noted that these challenges largely resulted from the COVID-19 pandemic.

  • Ghana must meet its tax obligations to prevent a catastrophe – Mohammed Amin Adam

    Ghana must meet its tax obligations to prevent a catastrophe – Mohammed Amin Adam

    Finance Minister-designate, Dr. Mohammed Amin Adam, has cautioned that Ghana could face serious challenges if it does not meet certain tax obligations required to meet targets set by the International Monetary Fund (IMF).

    He has urged the Ghana Revenue Authority (GRA) to proactively address any gaps to ensure revenue generation.

    During an engagement with the Commissioners of the Authority, Dr. Amin Adam emphasized that revenue mobilization is a critical priority for the government.

    Despite this, he commended the GRA for surpassing the revenue target for 2023.

    “Commissioner-General, this institution continues to perform admirably well. Last year, you managed to exceed the revenue target. Although the public seems to question the framework for target setting, I congratulate you on this achievement.”

    “However, this achievement also reveals the depth of potential to be optimised. This view is also shared by the wider public. Achieving and exceeding the targets is also critical to the success of the IMF-Extended Credit Facility (ECF) Programme. We cannot afford to miss our commitments programme”, he stressed.

    Dr. Mohammed Amin Adam emphasized the crucial role of the Ghana Revenue Authority (GRA) in supporting Ghana’s IMF program for 2024.

    “Commissioner-General, I take this opportunity to reiterate to you and your team the three key commitments you made under the programme for 2024: cleaning of the GRA taxpayer register by end-June 2024, complete data migration from all existing portals to the ITAS, operationalize the major modules (registration, returns filing and payments) in the system (and processes needed to be completed prior to that) by end December 2024”, he added.

    The finance minister also announced plans to collaborate with the GRA through a structured framework to surpass the GH¢145 billion revenue target set in the 2024 Budget.

  • Tax reliefs will be implemented without delay – Amin Adam

    Tax reliefs will be implemented without delay – Amin Adam

    Finance Minister-designate , Dr. Mohammed Amin Adam, has emphasized a swift implementation of tax reliefs outlined in the 2024 budget.

    Expressing his commitment to alleviating economic hardships for the poor amidst challenging economic conditions, Dr. Amin Adam, an expert in Energy and Petroleum Policy, assured that policies designed to shield vulnerable segments of society from economic adversities will be promptly executed as outlined in the budget.

    In an interview on Citi FM’s Citi Breakfast Show on Thursday, February 15, Dr. Amin Adam underscored the government’s dedication to the International Monetary Fund (IMF) program.

    The program aims to assist Ghana in addressing its balance of payment challenges, and Dr. Amin Adam assured that it would proceed without any disruptions.

    “We will make sure that we move faster to implement the tax reliefs that were made in the budget and I am going to make sure the poor are insulated….It is important to note that we are under an IMF programme and I want to assure the IMF and the business community that I will ensure that the programme remains on track. I will work to ensure that the programme does not suffer,” he said.

    As a former Minister of State at the Finance Ministry, Dr. Amin Adam is expected to play a key role in reinforcing Ghana’s economy and steering it back toward a path of growth.

  • Let’s work together to stabilize Ghana’s economic – IMF boss to new Finance Minister

    Let’s work together to stabilize Ghana’s economic – IMF boss to new Finance Minister

    The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has advised the newly appointed Minister of Finance, Dr. Mohammed Amin Adam, to maintain the efforts of the country’s economic reform program.

    In a congratulatory letter, Ms. Georgieva emphasized the importance of Dr. Amin Adam’s leadership in continuing the momentum of the IMF program to achieve economic stability and meet its targets.

    Ms. Georgieva highlighted the significance of guidance in driving the reform effort forward, stating, “Your leadership will be essential in sustaining Ghana’s reform effort and in further extending the current momentum of compelling program performance and gradual economic stabilization.”

    Expressing support, she assured the Minister that the IMF would collaborate with him to contribute to Ghana’s economic recovery. The letter concluded with warm wishes for success in Dr. Amin Adam’s new role.

    Ghana is currently implementing a three-year program with the IMF, aiming to receive a $3 billion support fund.

    The country has already received a second tranche of funding totaling $600 million, following the initial $600 million to support the Balance of Payment account.

    Dr. Mohammed Amin Adam, an Economist and Energy and Petroleum Policy Expert, has an extensive educational background, including a Ph.D. in Energy and Petroleum Economics from the University of Dundee. He has over 25 years of experience in political management, administration, and key roles in the Government of President Nana Akufo-Addo. Dr. Adam is recognized globally for his expertise and has served in various advisory capacities for international organizations and African countries.

  • We are committed to supporting you -IMF Boss to Amin Adam

    We are committed to supporting you -IMF Boss to Amin Adam


    The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has expressed her approval of the new Finance Minister, Dr. Mohammed Amin Adam.

    She emphasized the importance of Dr. Amin Adam’s leadership in maintaining Ghana’s reform initiatives and building upon the ongoing positive trajectory of program performance and economic stabilization.

    Kristalina Georgieva urged Dr. Adam to take the lead in restoring stability to Ghana’s economy.

    Dr. Mohammed Amin Adam, previously the Minister of State at the Finance Ministry, was promoted to the substantive Minister for the Finance Ministry in the recent reshuffle, replacing Mr. Ken Ofori-Atta.

    In her congratulatory statement, the IMF boss stated, “Your leadership will be essential in sustaining Ghana’s reform effort and in further extending the current momentum of compelling program performance and gradual economic stabilization. I would like to assure you of the International Monetary Fund’s continued commitment to support you in these endeavors.”

    Below is the IMF’s congratulatory note.

  • You have our full support – IMF tells Finance Minister designate Amin Adam

    You have our full support – IMF tells Finance Minister designate Amin Adam

    The International Monetary Fund (IMF) has congratulated Dr. Mohammed Amin Adam on his appointment as Finance Minister.

    In a congratulatory message, Kristalina Georgieva, the Managing Director of the IMF, urged Dr. Adam to spearhead efforts to restore stability to Ghana’s economy.

    Georgieva also assured him of the Fund’s unwavering commitment to fostering constructive engagement and providing support.

    “Your leadership will be essential in sustaining Ghana’s reform effort and in further extending the current momentum of compelling program performance and gradual economic stabilization. I would like to assure you of the International Monetary Fund’s continued commitment to support you in these endeavors,” the note read in part.

    Dr. Adam assumed the position on Wednesday, February 14, succeeding Ken Ofori-Atta as the head of the Ministry of Finance.

  • Let’s not deceive ourselves Amin Adam’s appointment won’t turn the economy around – Seth Terkper

    Let’s not deceive ourselves Amin Adam’s appointment won’t turn the economy around – Seth Terkper

    Former Finance Minister, Seth Terkper has cast doubt on President Akufo-Addo‘s choice to replace Ken Ofori-Atta with Dr. Mohammed Amin Adam as Finance Minister.

    Mr Terkper, expressing skepticism, argues that the timing of this change, occurring during the country’s engagement with an IMF program, might hinder Dr. Adam’s ability to have a significant impact on the economic policies of the president and government.

    Following his reassignment, Dr. Mohammed Amin Adam has pledged to prioritize revenue mobilization to fortify the nation’s finances and meet expenditure goals.

    He has also reassured the International Monetary Fund (IMF) of the government’s commitment to the ongoing program, promising alignment with outlined policies and programs in the 2024 budget.

    In an interview with Citi News, Terkper highlighted that budget and economic policies ultimately fall under the President’s authority. With the limited timeframe until the next general elections, he expressed concerns about Dr. Adam encountering challenges in implementing substantial policy changes.

    Terkper remarked, “We are a country where we could not do a turnaround of the economy, and we were preemptive, with everybody blaming it on COVID-19 and the Ukraine war, where some $6 billion flowed into the economy without the ability to turn it around.”

    “This administration is not the only one that has suffered global or domestic setbacks, from droughts or floods to the global financial crisis, and so I think the situation is dire, and so we have to ask ourselves if nine months is enough time to do a turnaround.”

  • I will ensure IMF programme remains on track – Amin Adam

    I will ensure IMF programme remains on track – Amin Adam

    The newly appointed Finance Minister, Dr. Mohammed Amin Adam, has reassured the International Monetary Fund (IMF) that the government will steadfastly adhere to the ongoing program.

    This commitment comes as Dr. Amin Adam takes over the role from Ken Ofori-Atta in a recent ministerial reshuffle.

    In an interview on the Citi Breakfast Show with Bernard Avle on Thursday, February 15, Dr. Amin Adam emphasized the government’s dedication to following the established path in collaboration with the IMF.

    He highlighted the continuation of pro-poor initiatives outlined in the recent budget and pledged to maintain business as usual.

    Dr. Amin Adam also expressed his commitment to swiftly implement the proposed tax reliefs and ensure the protection of the economically disadvantaged.

    “If you look at the budget that was presented this year, there were a number of pro-poor initiatives, and I do not intend to depart from those pro-poor initiatives. And I will ensure that business follows as usual as it should. We will make sure that we move faster to implement the tax reliefs that were made in the budget and I am going to make sure the poor are insulated.”

    “It is important to note that we are under an IMF programme and I want to assure the IMF and the business community that I will ensure that the programme remains on track. I will work to ensure that the programme does not suffer.”

    Acknowledging Ghana’s participation in the IMF program, Dr. Amin Adam assured both the IMF and the business community that he would work diligently to keep the program on track and prevent any deviations.

    The ongoing program represents a strategic partnership focused on addressing economic challenges and promoting fiscal responsibility within Ghana.

    The IMF program involves a comprehensive set of policies and reforms aimed at enhancing economic stability, fostering growth, and creating a conducive environment for sustainable development. Ghana’s engagement with the IMF has been motivated by various economic factors, including fiscal deficits, external imbalances, and the imperative for structural reforms. Historically, the country has sought IMF assistance to tackle fiscal challenges, implement economic reforms, and strengthen macroeconomic fundamentals. The program typically encompasses measures to curb inflation, reduce budget deficits, and bolster overall economic resilience.

  • Finance Minister-designate reaffirms commitment to IMF programme

    Finance Minister-designate reaffirms commitment to IMF programme

    Finance Minister-designate, Dr Mohammed Amin Adam, has underscored the government’s unwavering dedication to the ongoing programme with the International Monetary Fund (IMF), emphasizing continuity and adherence to established policies.

    In the aftermath of a recent ministerial reshuffle, Dr Amin Adam, assuming the role of Finance Minister, has emphasized the importance of maintaining collaboration with the IMF and ensuring consistency in economic strategies.

    Addressing concerns regarding potential deviations from existing fiscal paths, Dr. Amin Adam assured stakeholders of the government’s commitment to pro-poor initiatives outlined in the budget. “If you look at the budget that was presented this year, there were a number of pro-poor initiatives, and I do not intend to depart from those pro-poor initiatives,” he affirmed during an interview on Citi FM.

    Furthermore, Dr. Amin Adam highlighted the significance of expediting the implementation of tax reliefs outlined in the budget and safeguarding the interests of vulnerable populations. “I will ensure that business follows as usual as it should. We will make sure that we move faster to implement the tax reliefs that were made in the budget, and I am going to make sure the poor are insulated,” he stated.

    Acknowledging the importance of maintaining adherence to the IMF programme, Dr. Amin Adam emphasized the government’s commitment to ensuring the programme remains on track. “It is important to note that we are under an IMF programme, and I want to assure the IMF and the business community that I will ensure that the programme remains on track. I will work to ensure that the programme does not suffer,” he affirmed.

    The ongoing programme signifies a strategic partnership aimed at addressing economic challenges and promoting fiscal responsibility in Ghana. Dr. Amin Adam’s reaffirmation of commitment to the IMF programme underscores the government’s dedication to fostering economic stability and sustainable growth.

  • Mahama defends his reputation; refutes claims of economic mess

    Mahama defends his reputation; refutes claims of economic mess

    Former President John Dramani Mahama, the Flagbearer of the National Democratic Congress (NDC), has emphatically rejected assertions by the New Patriotic Party (NPP) that his previous administration left behind an economic mess. 

    Addressing a town hall meeting in Tamale on Tuesday as part of his Building Ghana Tour in the Northern Region, Mahama asserted that the NPP inherited a stabilized economy upon assuming office.

    Mahama refuted claims of economic mismanagement by providing comparative data on key economic indicators. 

    He highlighted that when he left office, the debt-to-Gross Domestic Product (GDP) ratio stood at 57%, which was below the recommended threshold for middle-income countries by the International Monetary Fund (IMF). 

    However, under the current administration, this ratio has soared to over 100%.

    Moreover, Mahama cited inflation rates, noting that during his tenure, inflation stood at 15.5%, while it surged to 54% under the NPP-led government before dropping to 30%. He also criticized the decline in cocoa production, indicating a drastic reduction from 960,000 metric tonnes under the NDC administration to under 500,000 metric tonnes under the current government.

    “When I left office, the debt to Gross Domestic Product (GDP) was 57 per cent and the optimum GDP for middle income countries as recommended by the International Monetary Fund (IMF) is 60 per cent,” he stated.

    “My administration was under the recommended debt to GDP but today, the debt to GDP is more than 100 percent,” he said.

    Highlighting achievements of his administration, Mahama emphasized the establishment of key financial instruments such as the Stabilisation Fund, crucial for navigating economic challenges like the COVID-19 pandemic, and the Ghana Infrastructural Investment Fund, which supported infrastructure development projects such as the Agenda 111 hospital initiative.

    Mahama underscored the strategic acquisition of two new oil fields during his tenure, aimed at tripling oil revenue for the nation. He contrasted this with the NDC’s accomplishments, achieved with only one oil field, the Jubilee field.

    “With all these, how did I leave a mess? The constant talk of Mahama left us a mess is a myth and not true. They created the mess themselves,” Mahama asserted, challenging the narrative propagated by the NPP regarding his administration’s economic legacy.

    The former President’s remarks at the town hall meeting aimed to provide clarity on his administration’s economic record and counter criticisms leveled against him by political opponents.

    As Ghana gears up for the 2024 elections, Mahama’s defense of his economic stewardship sets the stage for a spirited debate on competing visions for the nation’s future.

  • We won’t support you if you fail to implement programme – IMF ‘warns’ Ghana

    We won’t support you if you fail to implement programme – IMF ‘warns’ Ghana

    The International Monetary Fund (IMF) has emphasized the significance of Ghana adhering to the support program it is currently implementing over the next three years.

    Director of the African Regional Department at the IMF, Abebe Aemro Selassie, stressed the importance of Ghana’s full implementation of the program while addressing the press.

    Selassie highlighted the necessity for Ghana to fully implement the program, indicating that the IMF will maintain its support for the country only in alignment with the implementation of the program.

    “What I can say is that going forward would be really really important that Ghana continues to implement the programme that they have developed as envisaged. That is really critical”.

    “These programmes are designed to be implemented over three to four years. And it is important that you stick…Ghana’s sticks the course and see the programme being implemented over the next three years. So, we look forward to continuing to support Ghana, consistent with program implementation”, he explained.

    He emphasized that official creditors have indicated their willingness to provide debt relief in line with Ghana’s requirements. He assured support from his organization to ensure that Ghana avoids prolonged negotiations with external creditors due to their insistence on equal terms.

    The government is actively engaged in negotiations to finalize a deal with bilateral and commercial creditors for debt restructuring. However, there are concerns that the insistence on equal treatment for all creditors could prolong the process and have adverse effects on Ghana’s program and economy.

    Ghana has already received a $1.2 billion bailout package from the IMF as part of the three-year program.

  • Ghana is losing multinational companies as a result of excessive taxes – PwC Ghana

    Ghana is losing multinational companies as a result of excessive taxes – PwC Ghana

    Tax Partner at PwC Ghana, Abeku Gyan-Quansah, has expressed concern about the excessive tax burden faced by Ghanaian businesses.

    He noted that, as a result of the high taxes, some multinational companies are opting to relocate their core operations outside of Ghana to address the challenge.

    Gyan-Quansah disclosed, “What we have picked up based on our work is that some of these firms have changed their business models by moving core operations outside Ghana to deal with the challenge [high taxes],” he added.

    He emphasized that these businesses are relocating to produce goods or services abroad and then exporting them back to Ghana.

    Highlighting the origin of the tax policies, he clarified that the elevated taxes are not imposed by the International Monetary Fund (IMF) but are part of the Ghanaian government’s own program submitted to the IMF.

    Gyan-Quansah pointed out that, according to the Article IV consultation report by the IMF, there are approximately 27 tax measures outlined by the government to enhance Ghana’s revenue situation.

  • UK praises Ghana’s advancements under the IMF agreement

    UK praises Ghana’s advancements under the IMF agreement

    UK’s Minister of State for Development and Africa, Andrew Mitchell, expressed happiness about Ghana’s successful review of the International Monetary Fund (IMF) bailout program.

    He is pleased with the disbursement of a second tranche of US$600 million, seeing it as a sign of resilience and progress in steering the economy back to a path of growth despite challenges.

    During a meeting with Vice President Dr. Mahamudu Bawumia as part of the 9th UK-Ghana Business Council in Accra, Mr. Mitchell praised Ghana’s efforts. He also encouraged the government to closely follow the conditions outlined in the IMF program.

    “The UK-GBC is the foundation of our economic trade and investment partnership with Ghana. Since its establishment in 2018, we’ve witnessed a commendable boost in trade, investment and the forging of stronger partnerships, laying a robust foundation for growth,” he said.

    Acknowledging the difficulties faced by Ghana’s government in adhering to the conditions of the IMF programme, he conveyed the UK’s support for the programme’s reforms, saying: “We understand it has not been easy, which is why we are backing you to stick with the conditions of the IMF programme this year. By doing so, Ghana can continue to alleviate the economic pressures its citizens face.”.


    He mentioned various ways the British government can contribute to economic growth, citing the longstanding partnership between the central banks, tax authorities, and statistical agencies of both countries.

    Mr. Mitchell also revealed that the UK is currently developing a new program to aid Ghana’s long-term economic and financial stability. As part of this collaboration, officials from both countries have already been in discussions.

    In the UK’s recent roadmap for international development white paper, he highlighted the importance of modern equal partnerships that extend beyond aid to bring about mutual benefits.

    “Here in Ghana, with these partnerships and the UK-GBC, I believe we are ahead of others.

    “The economic context of our discussions has been challenging over the last few years. But let me assure you that Britain will continue to support Ghana. We will deepen mutual trade and investment opportunities, creating more jobs and prosperity,” he added.

    He further said the value of trade between the two countries currently stands at £2.1 billion, representing a £647million increase compared to the previous year.

    For his part, Vice President Dr. Bawumia acknowledged the growing cooperation in mutually beneficial areas of trade and investment between Ghana and the UK.

    He envisioned that the 9th UK-GBC meeting would further enhance bilateral and economic relations as well as strengthen strategic partnerships in various areas. “A platform such as this aims at boosting economic and commercial relations between our two countries and is most encouraging,” he added.

    Given these circumstances, he is optimistic about the future of trade relations between the two countries. He mentioned significant improvements in various areas of cooperation, such as agro-processing, garments and textiles, pharmaceuticals, roads, and airport infrastructure, since the inception of the UK-Ghana Business Council.

    Dr. Bawumia acknowledged the support received through UK-GBC in identifying new investment opportunities and assisting the country’s economic recovery plan.

    He emphasised that Ghana remains an attractive business destination in Africa for foreign direct investment (FDI). With the African Continental Free Trade Agreement (AfCFTA) now in effect, trade activities are expected to increase, contributing to economic growth, with Ghana serving as the gateway to a population of 1.3 billion Africans.

    Despite economic challenges, he stated that Ghana’s positive growth projections can facilitate the expansion of trade and investment activities with strategic partners.

    Therefore, he anticipates that UK businesses and the investor community can capitalise on Ghana’s favourable environment and foundation to enhance the momentum of such exchanges.

  • Govt finally agrees to ‘touch’ Free SHS under IMF requirements

    Govt finally agrees to ‘touch’ Free SHS under IMF requirements

    The government of Nana Addo Dankwa Akufo-Addo, in a significant development, has unequivocally announced its intention to review the flagship Free Senior High School (Free SHS) program. This revelation is outlined in the latest report from the International Monetary Fund (IMF) regarding Ghana’s US$3 billion bailout programme.

    Contained on page 76 of the comprehensive 155-page report under the section titled ‘PUBLIC SPENDING EFFICIENCY,’ the government discussed recalibrating the expenditure portfolio of Municipal and District Assemblies (MDAs) responsible for social spending.

    Specifically addressing education, the report states: “In the education sector, we will review and rationalize the Free Senior High School (SHS) program.”

    This move is part of a broader strategy to shift the spending composition of MDAs towards targeted and well-designed interventions.

    The report, dated December 18, 2023, titled “STAFF REPORT FOR THE 2023 ARTICLE IV CONSULTATION, FIRST REVIEW UNDER THE ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY, REQUEST FOR MODIFICATION OF PERFORMANCE CRITERIA, AND FINANCING ASSURANCES REVIEW,” sheds light on the government’s commitment to a thorough assessment of public sector wages, with a focus on the education and health sectors.

    Contrary to previous assertions, the government, led by the education minister, has now acknowledged the need for a review of the Free SHS program.

    The report emphasizes the objective of improving overall learning outcomes, including targeted measures to enhance foundational learning and continued support for tertiary education.

    This announcement comes amid recent exchanges between the government and former president John Dramani Mahama, who had pledged to review the Free SHS if elected in 2025. While the government has previously argued against the need for a review, the latest stance signals a shift towards recognizing the necessity for improvements in the Free SHS policy.

    IMF GHANA REPORT January 2023 by The Independent Ghana on Scribd

  • We will continue to support tertiary education but Free SHS will be reviewed – Gov’t to IMF

    We will continue to support tertiary education but Free SHS will be reviewed – Gov’t to IMF

    In a significant development, the Nana Addo Dankwa Akufo-Addo government has officially declared its intention to review the flagship Free Senior High School (Free SHS) program.

    This revelation comes as part of the information presented in the International Monetary Fund’s (IMF) latest report on Ghana’s US$3 billion bailout programme.

    The pertinent details of this policy shift are outlined on page 76 of the comprehensive 155-page report, falling under the section titled ‘PUBLIC SPENDING EFFICIENCY.’

    Within this segment, the government articulates its plans, which extend beyond the Free SHS program to include recalibrating the expenditure portfolio of Municipal and District Assemblies (MDAs) responsible for social spending.

    This strategic move suggests a broader commitment to enhancing public spending efficiency and highlights the government’s proactive stance in evaluating and adjusting key initiatives for the overall benefit of the nation.

    The decision to review the Free SHS program, a cornerstone of the government’s education policy, is likely to spark discussions and debates on the potential implications and desired outcomes.

    The relevant portion on education read: “The key objective is to shift the composition of spending by these MDAs towards targeted and well-designed interventions.

    “In addition to functional review of relevant MDAs, we will carry out a comprehensive assessment of public sector wages, including in education and health sectors.

    Just weeks ago, the government found itself embroiled in a verbal exchange with former President John Dramani Mahama, who pledged to review the Free Senior High School (Free SHS) program if elected in 2025.

    Despite the government’s staunch defense, led by the education minister, asserting that the program requires improvements rather than a review, the debate surrounding the Free SHS policy remains contentious.

    The Free SHS policy, a cornerstone of the government’s education initiatives, focuses on eliminating financial barriers by absorbing fees approved by the GES council. Its objectives include not only enhancing accessibility by removing cost constraints but also improving educational quality. This is achieved through measures such as providing core textbooks and supplementary readers, implementing teacher rationalization and deployment strategies, and other impactful initiatives.

    Furthermore, the policy aspires to address the anticipated surge in enrollment by expanding physical school infrastructure and facilities. As the government and former President Mahama lock horns over the future of the Free SHS program, the debate underscores the significance of this education policy and its potential impact on the nation’s educational landscape.

    “In the education sector, we will review and rationalize the Free Senior High School (SHS) program. We will continue our support to tertiary education, take targeted measures to improve foundational learning (e.g., increasing capitation grants) and introduce reforms with the help of development partners to improve overall learning outcomes.”

    The December 18, 2023 report was titled: “STAFF REPORT FOR THE 2023 ARTICLE IV CONSULTATION, FIRST REVIEW UNDER THE ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY, REQUEST FOR MODIFICATION OF PERFORMANCE CRITERIA, AND FINANCING ASSURANCES REVIEW.”

  • IMF commends Ghana Cocoa Board’s turnaround strategy for financial viability

    IMF commends Ghana Cocoa Board’s turnaround strategy for financial viability

    The International Monetary Fund (IMF) has acknowledged that the Ghana Cocoa Board (COCOBOD) has implemented a turnaround strategy aimed at enhancing transparency, efficiency, and financial sustainability.

    COCOBOD, responsible for facilitating cocoa production and holding an export monopoly, has historically faced losses due to a lack of systematic mechanisms for setting producer purchase prices (PPPs), significant quasi-fiscal activities (such as road construction and input subsidy programs), and substantial administrative costs.

    The accumulated debt of COCOBOD in recent years became burdensome, necessitating a restructuring.

    The IMF reports that COCOBOD’s turnaround strategy primarily focuses on streamlining development spending, aligning the PPP setting process with the Board’s financial constraints, and improving oversight.

    The IMF finds these efforts broadly consistent with its own recommendations.

    Quasi-fiscal Initiatives

    The document stated that COCOBOD has assessed current cocoa road contracts with the intention of substantial rationalization, taking into account factors such as their progress, performance, and termination expenses.

    “Additional rationalisation may be pursued in case of financing pressures. The board also intends to scale down fertilizer and pesticide subsidy programmes”.

    Price setting

    The IMF announced that the government and COCOBOD will initiate the implementation of a designated range for Producer Purchase Price (PPP) as a percentage of the Free on Board (FOB) export price.

    This range, subject to biennial reviews, aims to ensure an equitable distribution of export proceeds among farmers and various stakeholders in the value chain. Additionally, it is designed to secure a reliable revenue stream for COCOBOD, covering both operational and financial costs.

    For the upcoming 2024 and 2025 seasons, the authorities have established the minimum and maximum PPP (inclusive of Living Income Differential cost) at 60% and 70% of the contract FOB price.

    Oversight

    The document clarified that the government will enhance the Ministry of Finance’s supervision of COCOBOD’s finances, which includes the establishment of a specialized cocoa desk within the Ministry of Finance.

  • BoG gives nod to recapitalization plans for underfunded banks – IMF reports

    BoG gives nod to recapitalization plans for underfunded banks – IMF reports


    The International Monetary Fund’s (IMF) “2023 Article IV Consultation” Staff Report reveals that the Bank of Ghana has given approval to the recapitalization proposals submitted by undercapitalized banks.

    These banks are mandated to inject a minimum of one-third of the required capital annually over the next three years, concluding in 2025, to achieve a 13.0% Capital Adequacy Ratio without regulatory forbearance.

    Currently, a majority of banks have already submitted their recapitalization plans.

    “The BoG [Bank of Ghana] will initiate corrective measures by end-March 2024 against banks that fail to uphold these recapitalisation requirements (new structural benchmark). In the short term, the BoG [Bank of Ghana] stands ready to deploy contingency measures if needed to ensure financial sector stability.

    The Bretton Wood said this move will ensure that banks’ capital needs have been estimated based on reasonable forward-looking assessments of losses from government debt restructuring and increases in Non-Performing Loans.

    NIB’s insolvency plan to be addressed by end-2024

    “The authorities [government, BoG] also aim to address the legacy issues of the financial sector and strengthen the governance of state-owned banks. The remaining tasks from the earlier sector cleanup include addressing the challenges of NIB and long-standing undercapitalization of several special deposit taking institutions (SDIs)”.

    The report states that both the Bank of Ghana (BoG) and the Ministry of Finance will collaboratively formulate and initiate, by the end of March 2024, a credible, comprehensive, and cost-effective plan aimed at addressing the insolvency challenges of the National Investment Bank (NIB) by the end of 2024.

    In order to mitigate the accrual of additional risks until the completion of this plan, the Staff Report of the Fund indicates that the BoG is dedicated to strengthening the monitoring of NIB and imposing appropriate constraints on critical risk areas.

    The report emphasizes that the systematic resolution of other Specialized Deposit Taking Institutions and fund management firms, along with the settlement of outstanding payouts to clients of Securities and Exchange Commission (SEC)-licensed fund management companies, will be concluded by the conclusion of 2024. The government’s payouts will be executed through a burden-sharing approach to minimize fiscal costs.

    Furthermore, the authorities are committed to developing a strategy ensuring that state-owned banks adopt sound governance principles, effective business models, and robust risk management systems to secure their long-term viability and facilitate an organized government exit.

  • Don’t be too expectant; money from IMF is not for roads – Isaac Adjei Mensah tells Ghanaians

    Don’t be too expectant; money from IMF is not for roads – Isaac Adjei Mensah tells Ghanaians

    Former Deputy Minister for Roads and Highways, Isaac Adjei Mensah, has advised Ghanaians not to anticipate new road projects this year under the Akufo-Addo administration.

    He explained that the government’s primary focus is to utilise the International Monetary Fund (IMF) bailout to effectively stabilise the country’s economy, which has been struggling for at least two years.

    This statement comes in the wake of the approval of a second tranche of US$600 million as part of Ghana’s bailout package from the International Monetary Fund (IMF).

    While Finance Minister Ken Ofori-Atta has indicated that the funds will be used for various programs outlined in the 2024 Budget, the Ranking Member on the Roads and Highways Committee of Parliament contends that the budgetary allocation for roads is not noteworthy.

    “The roads sector is very bad yet this government lacks maintenance culture and is unable to fix the roads the erstwhile NDC government left behind,” the MP for Wassa East said on Dwaboase programme on TV XYZ.

    The legislator went on to say the government has failed to maintain existing roads, which has led to most highways deteriorating across the country.

    “This government has received more revenue than any government in the history of this country but if you as President Akufo-Addo to tell you what his administration has done with the huge funds and loans, he would not be able to tell you,” he added.

    To him, the government is not willing to rehabilitate roads anytime soon, adding that “the IMF funds will be pumped into the economy but not roads.”

    “If the government does not misuse the IMF cash, the economy can be stabilised, but speaking of roads, all major flagship projects have been suspended,” he stated.

  • Ghana is still broke and in debt distress – IMF

    Ghana is still broke and in debt distress – IMF

    The International Monetary Fund (IMF) has disclosed in its Staff Report on Ghana, titled “2023 Article IV Consultation,” that Ghana is still in debt distress, with the current position assessed as unsustainable.

    “Pending completion of the debt restructuring, the attached Debt Sustainability Analysis (DSA) continues to show large and protracted breaches to the standard thresholds”, the IMF said.

    As part of the ongoing debt restructuring efforts and in light of substantial and prolonged breaches to the Debt Sustainability Analysis (DSA) thresholds, the International Monetary Fund (IMF) stated in its Staff Report submitted to the Executive Board that Ghana remains in debt distress. The DSA assessment indicates that the debt remains unsustainable and has not changed since the publication in May 2023.

    A meeting between a team from the IMF and the Government of Ghana took place on October 6, 2023, to discuss policies supporting the IMF arrangement under the Extended Credit Facility (ECF) program.

    In 2023, the Ghanaian government initiated a debt restructuring program to bring the country’s debt to sustainable levels, a prerequisite for securing the IMF program. The comprehensive debt restructuring strategy aimed to restore a “moderate” risk of debt distress within the IMF-World Bank Debt Sustainability Framework for low-income countries (LIC-DSF).

    The restructuring efforts targeted external debt service relief during the program from 2023 to 2026 to address the external financing gap, and domestic debt restructuring was designed to significantly reduce domestic financing pressures.

    The International Monetary Fund (IMF) emphasized that the macroeconomic framework serves as the foundation for the Debt Sustainability Analysis. The staff baseline scenario is aligned with the macroeconomic trajectory outlined in the Fund-supported program, aimed at reinstating macroeconomic stability and ensuring debt sustainability in the medium term.

    Ghana experienced significant deterioration in its fiscal and external positions due to the impacts of the Covid-19 pandemic, global financial tightening, and the conflict in Ukraine. These external shocks, coupled with existing fiscal and debt vulnerabilities, resulted in a notable increase in both public and external debt. Consequently, Ghana faced challenges accessing international markets in late 2021, and the macroeconomic situation further complicated in 2022, marked by substantial losses.

    The Fund highlighted that the large fiscal deficits and the economic slowdown induced by the pandemic led to a surge in public debt from 63.0% of Gross Domestic Product (GDP) in 2019 to 93.3% of GDP by the end of 2022. Domestic debt also reached 50% of GDP in 2022, with 16.0% of GDP held by the Bank of Ghana, while public external debt stood at 43.3% of GDP.

    To address these challenges, the authorities have been implementing a comprehensive debt restructuring strategy. The objective is to achieve debt sustainability and a moderate risk of debt distress under the LIC-DSF framework by bringing down both debt stock and flow ratios to their respective thresholds.

    This includes “reduction in the PV of total debt-to-GDP and external debt service-to-revenue ratios to 55% and 18%, respectively, by 2028”.

    The report was also of the view that the Ministry of Finance should increase its surveillance of debt issuance by State Owned Enterprises and other public entities “Monitor and prevent over collateralization of debt issuance”.

  • Pay your debt on time and stop borrowing – IMF tells gov’t

    Pay your debt on time and stop borrowing – IMF tells gov’t

    The International Monetary Fund (IMF) has cautioned the Ghanaian government to strictly restrict borrowing on non-concessional terms and ensure timely debt payments.

    The Fund also suggested that the authorities should formulate and disclose a medium-term debt management strategy and an annual borrowing plan following the completion of external debt restructuring.

    In its 2023 Article IV Consultation, the IMF acknowledged the government’s commitment to the fiscal objectives of the program and its readiness to implement contingency measures if necessary.

    “Specifically, on the revenue side, some of the measures identified in our MTRS could be brought forward in case of unexpected underperformance,” the IMF added.

    On the spending side, the IMF noted that the budget allocations for Ministries, Departments, and Agencies (MDAs) would be reduced during the year if necessary.

    Despite expressing concerns, the IMF acknowledged that Ghana’s program has remained on track, with all indicative targets being met.

    “All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met”.

    The staff report added that Ghana is on track to reduce the fiscal primary deficit on a commitment basis by approximately 4 percentage points of Gross Domestic Product in 2023, aligning with the authorities’ commitments under the Fund-supported program.

    It further stated that spending has remained within program limits, and on the revenue side, Ghana has achieved its non-oil revenue mobilization target.

    It said sound policies and reforms should foster recovery and further reduce inflation over the medium term, adding, “downside risks include slippages in programme execution, delays in restructuring debt, and a deterioration in the external environment.”

    “The authorities have reoriented their macroeconomic policies, made progress in restructuring their debt, and initiated wide-ranging reforms,” the IMF concluded.

  • I’m totally disgusted! – Mahama fumes as he accuses BoG of illegally printing billions of cedis

    I’m totally disgusted! – Mahama fumes as he accuses BoG of illegally printing billions of cedis

    Former President John Dramani Mahama has called upon the minority caucus to closely scrutinize the activities of the Bank of Ghana concerning the recent release of the second tranche amounting to $600 million by the International Monetary Fund (IMF). 

    This disbursement follows the successful completion of the first review of the $3-billion three-year extended credit facility, approved by the Bretton Woods institution in May 2023.

    In his appeal to the minority caucus for prudent utilization of the IMF funds by the government, Mr Mahama didn’t mince words as he criticized the Bank of Ghana, alleging that it has worsened Ghana’s economic challenges by introducing a surplus of newly-printed banknotes into the financial system.

    While emphasizing the need for the government to exercise responsibility in handling the recently acquired IMF funds, Mahama directed a pointed critique at the central bank. 

    According to him, the alleged flooding of the system with freshly minted currency by the Bank of Ghana has contributed to the exacerbation of the economic difficulties faced by the nation.

    Mr Mahama said “under normal circumstances, the release of $600 million by the International Monetary Fund (IMF) to the government of Ghana should provide relief to the already-overburdened and suffering Ghanaian.”

    “It is, however, evident that Ghanaians will continue to suffer as long as Akufo-Addo, Bawumia and the NPP remain in office”, he posted on Facebook.

    Mr Mahama urged “the outgoing NPP government to be cautious, responsible and judicious in utilising the IMF $600 million and other funds that may be made available to Ghana from the World Bank and other development partners”.

    The former President declared that his party will closely monitor the government’s handling of the recently acquired funds. 

    “I have already encouraged the NDC minority in parliament to ensure strict oversight on both the government and not to take their eyes off the Bank of Ghana that illegally printed billions of cedis and aggravated our economic situation”.

    “On my part, I will, from time to time, continue to engage the Ghanaian public about my vision to build the Ghana we want and how we will work together to create well-paying jobs through my 24-hour economy policy and other pragmatic initiatives”.

    Last year, the Cassiel Ato Forson-led minority caucus marched in demand for the resignation of the Governor of the Bank of Ghana, Dr Ernest Addison as well as his two deputies.

    “The purpose of this protest is to express our revulsion at the illegal printing of money (about GHS80 billion) between 2021 and 2022 by the BoG for the corrupt Akufo-Addo/Bawumia/NPP government which led to a hyperinflation rate of 54.1 per cent in December 2022”, Dr Ato Forson said in a statement at the time.

    The caucus claimed GHC22.04bn of that amount was used by the BoG to support the government’s budget without parliamentary approval.

    “This singular act of BoG”, he emphasised, “has negatively impacted livelihoods and businesses and pushed about 850,000 Ghanaians into poverty in the year 2022 alone”.

    The caucus said as representatives of the people, it was “totally disgusted by the crass mismanagement and reckless mishandling of the affairs of the Bank of Ghana,which resulted in a gargantuan loss of GHS60.8 billion and a negative equity of GHS55.1 in 2022 with its attendant hardships on Ghanaians”.

    The Bank of Ghana, however, denied the allegations.

    In a statement issued on Tuesday, 26 July 2022, the central bank said Dr Forson’s claim could not be farther from the truth.

    The bank observed that Dr Forson’s reaction was in response to the 2022 mid-year fiscal policy review which was presented to parliament by the Minister of Finance on Monday, 25 July 2022.

    It explained: “In Appendix 2A of the Mid-Year Fiscal Policy Review document, under Financing, out of the total financing of GHC28.12 billion, an amount of GHC22.04 billion was captured under BoG”, adding: “This is the amount being referred to by the Ranking Member as BoG’s printing of currency to support the budget”.

    Concerning the loss and negative equity posted by the central bank, Governor Addison later explained at a press conference that it was important for Ghanaians to appreciate that the GHS60.8 billion loss recorded by the nank in 2022 “were technical losses arising from the haircut and the application of accounting standards (in particular, IFRS 9) to estimate expected credit losses over the tenor of the Government debt held by Bank of Ghana”.

    He told journalists on Monday, 21 August 2023: “It is not money lost by the Bank of Ghana through its operations in 2022”.

    Rather, he said “one should look at this as a reflection of the total cost of the economic and social crisis the country faced over the years and an attempt to resolve a major structural problem of the Ghanaian economy.”

    Also, Dr Addison said this is not the first time the central bank has recorded negative equity.

    “I must also add that, if one takes time to go through historical financial statements of the Bank of Ghana, you will realise that this is not the first time that the Bank has gone into negative equity”, he stated.

    He reported: “During the early years of structural adjustment, very large exchange rate depreciations led to revaluation lossesthat drove the Bank into negative equity”.

    Indeed, Dr Addison mentioned, “anytime the economy faces major challenges, the Bank of Ghana balance sheet suffers, and the equity position moves into negative territories”.

    “You will recall that in 2017 and 2018, the Bank of Ghana incurred similar negative equity from the impairment of legacy liquidity support loans granted in 2015 and 2016 to insolvent banks, which our external auditors impaired due to the doubtful prospects of recovering from those insolvent banks”.

    “The Bank of Ghana, however, recovered and generated profits throughout the period 2019 to 2021”, he pointed out.

    “It is worth noting that Central Banks are not commercial banks”, he highlighted, stressing: “Bank of Ghana’s current financial condition will not impact negatively on the operations of the Bank”.

    He said the IMF Technical Assistance mission validated this conclusion before the necessary decisions were taken.

    “In their opinion, the Bank of Ghana was policy solvent and would remain so, as it had enough income to cover monetary policy operational costs”, Dr Addison said.

    The Bank of Ghana, he indicated, “had sufficient capital amounting to about 15 per cent of its total liabilities”, noting: “Its recommendation was for the Bank to retain all profits and a reassessment should be made in the year 2027”.

    “The Bank will also manage to reduce its operational costs during this period”, he promised.

    In all these, Dr Addison said the Bank of Ghana has “acted within the applicable laws”. He also denied claims that the central bank has been bankrolling the government annually.

    “It is not true that Bank of Ghana has been providing financing for the Government every year. There has been zero-financing in 2017, 2018, 2019 and 2021. The Bank of Ghana has only had to support in the pandemic year of 2020 and the crisis year of 2022. The Bank of Ghana Act (612), as amended, limits financing of Government to 5 per cent of previous year’s tax revenue”, Dr Addison reiterated.

    “This provision in the law has been adhered to since I took office in April 2017. Between 2017 and 2019, in addition to the requirements of the Bank of Ghana Act (612), as amended, the Bank signed a Memorandum of Understanding (MOU) with the Ministry of Finance to even impose a tighter restriction of zero-central bank-financing, and this was observed strictly, even though MOUs are not legally binding. Between 2012 and 2015, the Bank of Ghana provided overdraft to finance government and COCOBOD every year. And there was neither a pandemic nor a global economic crisis”.

    “When Ghana was hit with the COVID-19 in 2020, Section 30(6) of the Bank of Ghana Act (612), as amended, was triggered, and as indicated earlier, the Bank purchased GHC10 billion worth of Covid-19 bonds to support the economy through the pandemic”.

    “This was done within the applicable laws governing the Bank of Ghana. When section 30 (6) of the Bank of Ghana Act (612), as amended, is triggered, it, allows the Governor, the Minister for Finance and the Controller and Accountant General to agree on a new limit of central bank financing”.

    “The law further says that the Minister of Finance will then have to inform parliament and the Minister has since informed parliament as part of his briefing to update Parliament on the IMF programme and status of the Domestic Debt Exchange”.

  • Corruption is a threat to Ghana’s democracy – Julius Malema 

    Corruption is a threat to Ghana’s democracy – Julius Malema 

    Prominent South African politician Julius Malema has expressed deep concerns about the integrity of Ghana’s democracy, citing corruption as a significant and imminent threat. 

    His remarks, delivered with a sense of urgency, highlight the pressing need for collective action to safeguard democratic principles in the West African nation.

    Speaking to Ghanaian Youth at an AriseGhana Event, Founder of Economic Freedom Fighters, a South African Political Party, highlighted corruption as impeding Ghana’s ability to repay international debts to institutions such as the IMF.

    “The democracy of Ghana is threatened by democracy. Today, because of democracy Ghana cannot pay its international debt.”

  • IMF credits BoG’s account with second tranche of 600m US dollars

    IMF credits BoG’s account with second tranche of 600m US dollars

    Bank of Ghana has confirmed the receipt of US$600 million as the second installment of Ghana’s bailout package with the International Monetary Fund (IMF).

    This financial injection, designated for budget support and stabilisation of the local currency, was officially credited to the Central Bank’s account on Tuesday, January 23, 2023.

    With this, Ghana has now received a total of US$1.2 billion out of the approved $3 billion under the three-year extended credit facility initiated in May of the previous year.

    Unlike the first tranche, which aimed to address Ghana’s balance of payment issues, the entirety of the second tranche will be used to fund projects and programs outlined in the 2024 budget.

    The IMF approved the second tranche last Friday, following Ghana’s successful negotiations with bilateral lenders, including China and France, a crucial step that triggered the disbursement.

    The IMF highlighted Ghana’s positive performance under the program, with implemented reforms yielding positive outcomes and signs of economic stabilisation becoming apparent.

    Barring unforeseen circumstances, the next IMF program review for the third tranche of US$720 million is scheduled in six months.

    In addition to the funds from the IMF, the second tranche has facilitated additional financial support from other international donors. The World Bank’s Executive Board is set to provide approximately $300 million in budget support for Ghana, following an agreement in principle on the key parameters of the proposed debt restructuring reached by the Official Creditors’ Committee under the G20 Common Framework.

    This disbursement aims to aid Ghana’s recovery, attract investments, and restore a sustainable growth path while addressing the country’s debt sustainability.

    The Board’s approval on January 23, 2023, will be followed by the World Bank’s disbursement of $250 million as part of its contribution to the Ghana Financial Stability Fund. This contribution is expected to assist banks significantly affected by the Domestic Debt Exchange Programme.

  • IMF affirms strong performance by Ghana under fund programme, meeting quantitative and indicative targets

    IMF affirms strong performance by Ghana under fund programme, meeting quantitative and indicative targets

    International Monetary Fund (IMF) has acknowledged Ghana’s robust performance under the Fund programme, revealing that the country has successfully met all quantitative performance criteria for the first review, along with almost all indicative targets and structural benchmarks.

    Following the Executive Board’s conclusion of the 2023 Article IV Consultation with Ghana and the First Review under the Extended Credit Facility Arrangement, the IMF stated that Ghana’s commitment to the Fund-supported programme is evident in its progress toward reducing the fiscal primary deficit by approximately 4 percentage points of GDP in 2023.

    The IMF highlighted several key achievements, emphasizing that spending has remained within program limits. Additionally, the authorities, comprising the Ministry of Finance and the Bank of Ghana, have significantly expanded social protection programs to mitigate the impact of the crisis on the most vulnerable populations. On the revenue front, Ghana has successfully met its non-oil revenue mobilization target.

    The statement further noted that the Ghanaian authorities are making substantial headway in their debt restructuring strategy. The domestic debt restructuring was completed in the summer, and an agreement with the Official Creditor Committee (OCC) under the G20’s Common Framework was reached on January 12, 2024, aligning with Fund program parameters.

    Ambitious structural fiscal reforms are contributing to the positive trajectory, enhancing domestic revenues, improving spending efficiency, strengthening public financial and debt management, ensuring financial sector stability, fostering governance and transparency, and creating an environment conducive to private sector investment.

    The IMF acknowledged the tangible results of these reform efforts, citing signs of economic stabilization, resilient growth in 2023, declining inflation, and improved fiscal and external positions.

    Looking ahead, the IMF stressed the importance of steadfast policy and reform implementation to fully and durably restore macroeconomic stability and debt sustainability, fostering higher and more inclusive growth. The government’s plans to reduce deficits, mobilize additional domestic revenue, streamline expenditure, and finalize comprehensive debt restructuring were highlighted as critical steps.

    The IMF emphasized the need for continued efforts to protect the vulnerable and create space for higher social and development spending. Reforms in tax administration, expenditure control, management of arrears, fiscal rules, institutions, and state-owned enterprises (SOEs) management were identified as crucial for lasting adjustment.

    The Deputy Managing Director and Acting Chair, Bo Li, concluded by highlighting the government’s decisive steps to rein in inflation, rebuild foreign reserve buffers, and mitigate the impact of domestic debt restructuring on financial institutions. The IMF encouraged maintaining an appropriately tight monetary stance and enhancing exchange rate flexibility to achieve the program’s objectives. Reforms to create a conducive environment for private investment and promote a green recovery were also emphasized.

    Ghana’s exposure to climate shocks was acknowledged, and promoting a green recovery by advancing adaptation and mitigation agendas was underscored as a priority. The IMF affirmed its commitment to supporting Ghana’s economic recovery and sustainability.

  • World Bank Group approves Ghana’s debt restructuring agreement

    World Bank Group approves Ghana’s debt restructuring agreement

    World Bank Group tentatively embraced the agreement outlining essential parameters for Ghana’s proposed debt restructuring, as brokered by the Official Creditors’ Committee within the G20 Common Framework.

    This accord, aligned with the Joint World Bank-International Monetary Fund (WB-IMF) Debt Sustainability Framework, marks a significant achievement in the journey towards reinstating debt sustainability in Ghana.

    In principle, the World Bank Group expressed its approval of the parameters outlined in the debt restructuring agreement for Ghana, which were reached by the Official Creditors’ Committee under the G20 Common Framework. This pivotal agreement, consistent with the Joint WB-IMF Debt Sustainability Framework, represents a crucial step in restoring debt sustainability within the country.

    “This agreement will help unlock financial support by international financial institutions, including a US$300 million budget support operation supported by IDA that will be considered by the World Bank’s Board of Executive Directors next week.

    “This will help Ghana in its recovery by attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

    The Resilient Recovery Development Policy Operation is the first in a series of three operations totaling US$900 million and part of a broad World Bank engagement in support of crisis response and resilience in Ghana.

    The country implements US$4.3 billion in commitments from the World Bank through national and regional projects focused on private sector development and jobs, inclusive service delivery and sustainable, resilient development.

  • Bank of Ghana governor optimistic about drastic inflation reduction

    Bank of Ghana governor optimistic about drastic inflation reduction

    Governor of the Bank of Ghana, Dr Ernest Addison, has conveyed optimism regarding a substantial reduction in inflation as the Central Bank remains steadfast in its efforts to implement sound policies. Dr Addison expressed confidence that the Bank’s measures will lead to a drastic decline in inflation, with the ultimate goal of anchoring expectations toward a single-digit target.

    Speaking at a recent meeting involving the Country Representative of the International Monetary Fund (IMF) and the Minister of Finance, Ken Ofori-Atta, Dr. Addison highlighted the commitment of all stakeholders in achieving price and financial stability. He emphasized the importance of continuous monitoring of both domestic and external developments to sustain the observed downward trajectory in inflation without compromising economic growth.

    Reflecting on the economic landscape in 2023, Dr. Addison noted a robust reduction in inflation and stronger growth, citing it as an instructive experience. A year ago, inflation stood at a daunting 54% (January 2023). Through rigorous policies, tight monetary conditions, and exchange rate stability, the Governor revealed that inflation has been more than halved by the end of 2023, currently reported at 23.0%.

    Several factors contributed to this disinflation process, including the monetary policy stance throughout 2023, stability in crude oil prices leading to favorable impacts on transportation costs, a relatively stable exchange rate environment, increased foreign exchange reserve accumulation from the gold for reserve program, and favorable climatic conditions benefiting the food supply chain process.

    Looking ahead, Dr. Addison addressed the successful conclusion of the first review of the IMF Programme, urging consideration for the second review and beyond. While tentative indications suggest sound policy implementation through December 2023, the Governor emphasized the need for vigilance and commitment in 2024 to execute all structural reforms envisioned under the program. He concluded by underscoring the critical role of implementing these reforms to ensure the effective functioning of the economy.

    The Governor’s positive outlook and commitment to economic stability signal potential resilience and recovery for Ghana’s economy in the coming years.

  • IMF forecasts 15.0% year-end inflation for 2024, anticipates 8.0% for 2025 

    IMF forecasts 15.0% year-end inflation for 2024, anticipates 8.0% for 2025 

    The International Monetary Fund (IMF) has forecasted a 15% year-end inflation rate for 2024, signaling potential economic dynamics and challenges ahead.

    The IMF is extending its forecast, foreseeing an 8.0% year-end inflation rate not only for 2025 but also for the subsequent years 2026 and 2027. This outlook shapes expectations for the medium-term economic landscape, guiding attention to potential trends and considerations.

    This implies a deceleration in the upward trajectory of prices for goods and services, with a notable slowdown expected in the current year and a more significant reduction anticipated over the next three years.

    The revelation was captured in the Fund’s latest document dubbed “Ghana: Selected Economic and Financial Indicators, 2022–28”.

    Year-on-year inflation fell significantly by 30.4 percentage points in 2023 to 23.2% in December 2023. In January 2023, Ghana’s inflation rate stood at 53.6%.

    According to the figures from the Ghana Statistical Service, food inflation drove down the overall inflation with a rate of 28.7% in December 2023, compared with 32.2% in November 2023. The non-food inflation also went down to 18.7% in December 2023 from 21.7% in November 2023.

    Inflation for locally produced items stood at 23.8% in December 2023, whilst inflation for imported items was 21.9%.

    Six divisions recorded inflation rates higher than the national average.

    They were Alcoholic Beverages, Tobacco and Narcotics (38.2%); Personal Care, Social Protection and Miscellaneous Goods and Services (31.1%); Food and Non-Alcoholic Beverages (28.7%); Restaurants and Accommodation Services (28.0%); Furnishings, Household Equipment and Routine Household Maintenance (26.9%) and Recreation, Sports and Culture (24.9%).

  • Ghana’s economic performance exceeds expectations – IMF

    Ghana’s economic performance exceeds expectations – IMF

    The International Monetary Fund (IMF) has revealed that Ghana’s performance under the Fund program has been robust, with all quantitative performance criteria for the first review and nearly all indicative targets and structural benchmarks being met.

    In a statement following the Executive Board Concluding of the 2023 Article IV Consultation with Ghana and First Review under the Extended Credit Facility Arrangement, the Fund commended Ghana for being on track to lower the fiscal primary deficit by about 4 percentage points of GDP in 2023.

    The statement highlighted that spending remained within program limits, and the authorities (Ministry of Finance, Bank of Ghana) significantly expanded social protection programs to mitigate the impact of the crisis on the most vulnerable population. Ghana also met its non-oil revenue mobilization target on the revenue side.

    “Spending has remained within program limits. To help mitigate the impact of the crisis on the most vulnerable population, the authorities [Ministry of Finance, Bank of Ghana] have significantly expanded social protection programmes. On the revenue side, Ghana has met its non-oil revenue mobilization target”, the statement pointed out.

    Moreover, the statement acknowledged Ghanaian authorities’ progress on their debt restructuring strategy, emphasizing the completion of domestic debt restructuring and an agreement with the Official Creditor Committee (OCC) under the G20’s Common Framework. This agreement paved the way for the Executive Board review to be completed.

    The IMF noted that ambitious structural fiscal reforms in Ghana are enhancing domestic revenues, improving spending efficiency, strengthening public financial and debt management, preserving financial sector stability, enhancing governance and transparency, and creating a more conducive environment for private sector investment.

    The statement pointed out that the authorities’ reform efforts are yielding positive results, with signs of economic stabilization such as resilient growth in 2023, declining inflation, and improvements in the fiscal and external positions.

    Looking ahead, the IMF stressed the importance of steadfast policy and reform implementation for fully restoring macroeconomic stability, debt sustainability, and fostering sustainable economic growth and poverty reduction.

    Deputy Managing Director and Acting Chair, Bo Li, acknowledged Ghana’s economic performance amid significant volatility. He emphasized the positive results of the authorities’ efforts to reorient macroeconomic policies, restructure debt, and implement wide-ranging reforms. Bo Li highlighted the need for continued efforts, including reducing deficits, finalizing comprehensive debt restructuring, protecting the vulnerable, and implementing reforms to improve tax administration, fiscal rules, institutions, and SOEs management.

    He also emphasized the importance of maintaining an appropriately tight monetary stance, enhancing exchange rate flexibility, and addressing issues in the financial sector to achieve the program’s objectives. Bo Li concluded by stressing the need for reforms to create a conducive environment for private investment and promoting a green recovery to address Ghana’s exposure to climate shocks.