IMF Assures Ghana Of Support

The International Monetary Fund (IMF) has reaffirmed its commitment to supporting Ghana’s ailing economic and social situation with a policy that is consistent with that of the IMF.

The assurance was given by Carlo Sdralevich, the leader of a team of IMF officials who met with the relevant Ghanaian authorities 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 team observed that “the fiscal and debt situation of the country 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 manoeuvre. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.”

Sdralevich explained that the discussions with the Ghanaian authorities focused on sustainably improving fiscal balances while protecting the vulnerable and poor; ensuring the credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.

The IMF also promised 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.”

The team of IMF officials who visited Ghana met with Vice President Bawumia, Finance Minister Ofori-Atta, Governor Addison of the Bank of Ghana, Parliament’s Finance Committee, civil society organisations, and development partners, including UNICEF and the World Bank.

The meeting began on July 6 and ended on July 13, 2022.

Source: opemsuo.com/Hajara Fuseini