IMF Promises Sound Policies To Restore Stability And Lay Stronger Growth Foundation For Ghana

IMF Promises Sound Policies To Restore Stability And Lay Stronger Growth Foundation For Ghana

  • The IMF is upbeat about securing good policies for Ghana to restore economic stability and lay better ground foundation
  • The Bretton Woods Institution is confident of announcing a bailout programme in the coming days
  • A Ghanaian delegation has been in Washington DC from October 11 to 19, 2022, to straighten out bailout proposals with the IMF

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Ghana’s bailout deal with the International Monetary Fund (IMF) is coming along very well.

A statement released by the IMF after a series of discussions in Washington DC shows Ghana would soon clinch deal the Bretton Woods institution very soon.

Leader of the IMF team that met Ghana’s delegation from October 11 to 19, 2022, Stéphane Roudet, said in a statement that good policies to improve Ghana’s economy has been identified.

President Nana Akufo-Addo (R) has come under pressure over the cedi's rapid fall. Source: UGC
Source: UGC

Ghana’s delegation include Finance Minister Ken Ofori-Atta and Governor of the Bank of Ghana, Dr Ernest Addison, among others.

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“The Ghanaian delegation and IMF staff had very fruitful discussions on the authorities’ post-COVID programme for economic growth and associated policies and reforms that could be supported by a new IMF arrangement.
“We made good progress in identifying specific policies that would restore macroeconomic stability and lay the foundation for stronger and more inclusive growth,” the statement said.

Why Ghana Is Seeking An IMF Bailout

Ghana under Nana Akufo-Addo’s presidency is seeking a bailout from the international lender because its fiscal and debt vulnerabilities are worsening fast amid external pressures.

During the COVID-19 pandemic, Ghana’s public debt increased from 65% to 80% of GDP. At the same time, the government’s fiscal efforts to preserve debt sustainability were not seen as sufficient by investors, leading to credit rating downgrades, non-resident investors exit from domestic bond market and loss of access to international capital markets.

The IMF’s Stéphane Roudet said in the statement released after the meeting the Ghanaian delegation that, “discussions will continue in the weeks ahead, with a follow-up mission to take place expeditiously.”

Finance Minister Begs Ghanaians Not To Panic As $1 Hovers Around GH¢15

Meanwhile, has reported in a previous story that the finance minister Ken Ofori-Atta has urged Ghanaians not be alarmed over the cedi's rapid fall against the dollar.

Speaking from Washington DC, the minister admitted that the cedi's depreciation is perplexing, but said things will soon get better.

He said the activities of importers in October has appreciated the dollar against the cedi, adding that an IMF deal next year should strengthen the local currency.

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