Ofori Atta: IMF Programme Will Tackle Inflation, Currency Strength
The Minister for Finance, Ken Ofori Atta has underscored the need for concerted efforts in securing the approval of the Board and Management for the International Monetary Fund (IMF) for Ghana’s Post-COVID-19 Program for Economic Growth (PC-PEG).
Among the problems the programme will solve, he said, is inflation and the cedi depreciation.
Inflation currently stands at 50.3 % whereas the cedi since January has depreciated by 54%.
“Truly the eventual conclusion of the programme will assist us in our efforts to restore stability, tackle inflation and strengthen our currency”, he said.
Speaking at a joint press conference by the IMF team in Ghana and the Finance Ministryon Tuesday, it was announced that the government of Ghana reached a Staff-Level Agreement (SLA) with the IMF on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) for about US$3 billion.
But the Finance Minister says SLA is just an aspect of the process with more work yet to be done to secure IMF management and Board approval.
Ofori Atta said the various ingredients of the programme must be supported by all stakeholders to receive approval.
“Key fiscal measures, structural reforms and the medium term macro fiscal framework in the 2023 budget are aligned with the IMF supported programme. It is therefore crucial that we receive support from all stakeholders especially Parliament to ensure that the 2023 Budget including all revenue measures are passed and creditors to ensure a successful operation.”
“We can only get to the IMF if we get sufficient commitment from our creditors in support of the debt operation.”
According to him, the fiscal adjustments in the 2023 budget are not enough to address the country’s economic challenges, hence the announced debt restructuring.
The government is now looking forward to having discussions with bilateral partners and bond investors over the debt exchange programme.
Source: opemsuo.com/Hajara Fuseini
