The International Monetary Fund (IMF) has promised to firm up engagement in the coming weeks with Ghanaian authorities in respect of a meaningful programme to ease the economic burdens of the West African nation.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation.
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies,” a statement released by the IMF Mission Chief to Ghana, Carlo Sdralevich said after the eight-day meeting.
The Team said it will help the government of Ghana to improve its fiscal balances in a sustainable way while protecting the vulnerable and poor.
This according to the IMF Team is part of a raft of measures discussed during the first round of discussions on an economic support programme that ended Wednesday (July 13, 2022).
The discussions also explored ways to ensure the credibility of the monetary policy and exchange rate regimes, preserve financial sector stability, and design reforms to enhance growth, create jobs, and strengthen governance.
Below is a copy of the statement issued by the IMF after the meetings in Accra
An International Monetary Fund (IMF) staff team led by Carlo Sdralevich visited Accra during July 6-13, 2022, to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Program that could be supported by an IMF lending arrangement. The IMF team met with H.E. Vice President Bawumia, Finance Minister Ofori-Atta, and Governor Addison of the Bank of Ghana. The team also met with the Parliament’s Finance Committee, civil society organizations, and development partners, including UNICEF and the World Bank to engage on social spending.
At the conclusion of the mission, Mr. Sdralevich issued the following statement:
“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”
Source: Ghana/Kasapafmonline.com/102.5 Fm
