- October 17, 2022
- Posted by: Amos Ekow Coffie
- Categories: Banking and Finance, Economics
The International Monetary Fund (IMF) has assured that it will fast track processes with the Government of Ghana to provide support for the country through an economic programme.
The Head of the African Department, Abebe Selassie announced this during the release of the African Economic Outlook Report in Washington DC on the sidelines of the Annual IMF/World Bank meetings.
Reiterating IMF’s commitment to working with Ghana, Mr. Selassie stated that the Fund put together a mission immediately after Ghana made a request for support.
“I can tell that we are doing our best, and will do our utmost to ensure that we can provide support for Ghana as quickly as possible”, he said.
“We will do our best to avoid any delays when it comes to Ghana’s programme”, he added.
Ghana’s debt issues and possible restructuring
Mr. Selassie stated that an important part of the IMF engagement with Ghana will be providing funding to help the country.
He, however added that there are conditionalities which may require a country to restructure its debt if it reaches unsustainable levels.
Providing some details, Mr. Selassie explained that part of the work ongoing with Ghana is to assess Ghana’s debt situation through the Debt Sustainability Analysis.
He noted that the funding, will come with some very important reforms that should be undertaken by the government.
Possible conditions for Ghana
Mr. Selassie pointed out that Ghana will have to take the lead, to receive responses and support from the IMF.
“Government of Ghana has also shared its key reform plans with the IMF on the proposed economic programme for financial support”, Mr. Selassie disclosed.
“We have now agreed on a road map on the Government of Ghana’s key reform plans on how things should happen going forward”, he added.
Mr. Selassie stated that both parties are making good progress on the Economic Programme for Ghana.
Ghana debt issues
On debt issues, he stated that it is very important to clarify that countries with unsustainable levels must be assisted to ultimately help its citizens.
“Much will however be dependent on how this economic plan from the government can be fleshed out and work on it for Ghana programmes”, he said.
Economic programme and timelines
Finance Minister, Ken Ofori-Atta recently disclosed to Joy Business that Ghana is working hard to secure a programme with the IMF by November this year.
Government is hoping to enter a progamme with the IMF before the 2023 budget is presented in November 2022.