Ghana will in the coming days meet officials of the International Monetary Fund (IMF) to seek for renegotiation over the bailout conditions attached to the US$918million Extended Credit Facility granted the country in April 2015.
Information circulating among government officials suggests that none of the conditions has so far been met by the West African nation even though some monies totaling over US$3465million have been advanced to assist in stabilizing the economy.
The IMF in the first week of April 2015 approved Ghana’s request for US$918 bailout program which was aimed at restoring debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.
The money was expected to be spread over three years following the Board’s approval but the bailout came with certain conditions.
Ghana was expected to have reduced its expenditure by 4.1% of GDP between 2015 and 2017.
During the period, the country’s central bank monetary policy was to continue pursuing an inflation targeting framework, which was aimed at achieving single digit inflation in 2016.
But none of these together with other conditions have been met, an issue which has triggered for renegotiation by the new government.
Head of President Nana Addo-Dankwa Akufo-Addo’s transitional team who has also been designated as a senior minister, Yaw Osafo Maafo, according to inside sources is pushing for early meeting with the IMF.
In the middle of 2015, some Ghana economist criticized the program, claiming that some of the conditions attached to it are unrealistic, and advised the then government led by John Dramani Mahama to seek for renegotiation.
