Ghana meets with IMF to decide on program extension

Ghana meets with IMF to decide on program extension

- Government will meet with the IMF in June to determine whether to extend the program

- The IMF reveals Ghana’s economy has rebounded due to the IMF program

- Click here for the latest stories in Ghana

Ghana will be holding talks with the International Monetary Fund (IMF) on whether or not the IMF deal be extended.

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These talks, which will take place in June, is expected to see the finance minister, Ken Ofori Attah engage with top executives of the IMF in Washington for these emergency talks.

Ghana meets with IMF to decide on program extension

The IMF and World Bank are both predicting a marginal growth for Ghana. (Bawumia in an interaction with officials from the World Bank executives in Washington)

So far, some economists have projected there could be a possible extension of the IMF program as part of government’s quest to gain its credibility on the world stage.

Member of the finance committee in parliament, Dr. Assibey Yeboah has revealed that government might consider extending the program only if the IMF considers granting government much capital.

“We will only go into December if only they will give us more money…if you are under the Fund’s program, you are not able to borrow so the earlier you wean yourself off, the better,” he explained.

Ghana entered into a 918 million dollar extended credit facility programme with the IMF in 2015 – a move which attracted the criticism of the current NPP administration which was of the view that the programme was not value for money.

Watch finance minister, Ken Ofori Attah speaking on the IMF deal:

But even as government considers either continuing or terminating the programme, the World Bank predicts the country has the potential of growing between 6 to 7 percent of GDP in 2017 and 2018, premising their projections on the positive performance of the commodity market (mainly gold and cocoa) on the world market.

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This projection by the World Bank remains fragile one especially when the production of cocoa in the country has been on the decline over the past few years due to the high cost of fertilizer and non-availability of a market base. The issue of gold also remains highly fragile especially as the country has been hit by the scourge of illegal mining.

Also, IMF fears the economies of Ghana and other African countries are slowly growing. The Fund is thus calling for more stringent measures. Here’s more in this recent IMF video below:

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