Mahama Government Eyes More Cash From The IMF, Others

• Finance Minister-designate Cassiel Ato Forson said the Mahama administration is hoping to secure more support from the IMF
• Forson told the press that the Mahama administration is committed to securing more funding
• Ghana sought a $3 billion bailout from the Washington-based lender in 2022 because it defaulted on its debt

Finance Minister-designate Cassiel Ato Forson said the Mahama administration is hoping to secure more support from the IMF.

Forson told the press that the Mahama administration is committed to working with the IMF and is working hard to secure more funding.

Bloomberg also reported that the administration is also eyeing more funding from the World Bank and international development partners.

“We know what investors have gone through, we can’t have a second wave of economic crisis, we will work for the good of all."

Ghana is slowly climbing out of one of its worst economic and debt crises. In a recent report, the IMF said Ghana's economic reform programme is delivering on its objectives.

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In 2022, Ghana sought a $3 billion bailout from the IMF because it couldn’t keep up with debt payments that were consuming more than half of government revenues.

Implementing reforms under the facility helped it rework its debt and exit default in October.

The World Bank also approved $250 million for a five-year Ghana Financial Stability Project. The project approved on Friday, May 31, 2024, is under International Development Association credit.

The World Bank's project was expected to benefit eligible but under-capitalised banks in the country immediately.

Ghana launched a domestic debt exchange on December 5, 2022, which included $55 billion in public debt.

Under the domestic debt exchange, local bonds were exchanged for new ones maturing in 2027, 2029, 2032, and 2037.

The central bank lost over GH¢55 billion due to haircuts that its investments.

Mahama promises to renegotiate IMF deal

When campaigning to be president, the National Democratic Congress flagbearer, John Mahama, said he planned to renegotiate Ghana’s agreement with the IMF if he became president.

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Mahama believes the IMF would not be against a renegotiation based on his experience under a previous programme.

"I've been in an IMF programme before, when I was president, and I know that the IMF is not averse to sitting and talking and renegotiating issues."

He also said he would seek additional IMF funds to help Ghana resume the debt repayments.

Mahama makes first ministerial appointments

YEN.com.gh reported that Forson, John Jinapor and Dominic Ayine have been assigned to critical cabinet portfolios by Mahama.

These are the first ministerial appointments by Mahama, who promised to appoint less than 60 ministers.

Forson was nominated as Finance Minister-designate, with Jinapor and Dominic Akuritinga Ayine as Ministers-designate for Energy and Attorney General, respectively.

Source: YEN.com.gh