The International Monetary Fund (IMF) has expressed satisfaction with Ghana’s management of the economy in a review of the country’s ongoing bailout programme .
According to the IMF review Ghana’s economic performance is on track but very risky. “[Ghana’s] economic outlook remains difficult with risks tilted to the downside.”
The IMF said it was impressed with the government’s fiscal consolidation measures and efforts to increase electricity production. Meanwhile, it warned that the Mahama-led administration must ensure to “resolutely continue their fiscal consolidation efforts”.
“…In this regard, it is essential that the government sticks firmly to its policy of strict expenditure controls, by maintaining the wage bill within the budget limits, while controlling discretionary spending and protecting priority spending,” the IMF stated.
The IMF however, caused government to ensure to put in place reforms that will enhance the economy more and reduce any potential risk.
“Financial sector stability will need to be monitored closely in a context of deteriorating asset quality. The BoG should take immediate steps to increase resilience and address weaknesses in asset classification. Prompt implementation of the new banking laws currently under review by Parliament is also essential to safeguard financial sector stability,” the IMF noted.
The review also means Ghana will receive another US$114.6 million, bringing total disbursements under the arrangement to about US$343.7 million.