Ghana’s Economy To Deteriorate Further- Goldman Sachs Worried About Slow-paced IMF Negotiations

• Goldman Sachs is worried about Ghana's economic outlook considering the 'no sense of urgency' in closing an IMF deal
• The renowned world investors also add that the delay in closing an IMF deal as soon as possible will have serious consequences for the Ghanaian economy
• The Akufo-Addo-led government is set to commence discussions for the IMF program in September

World-renowned investment banking leader Goldman Sachs has expressed worry over the government's lackadaisical approach in negotiations for a programme with the International Monetary Fund (IMF).

According to them, there appears to a "no sense of urgency" by the government in quickly closing a programme to turn around the country's economic fortunes.

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In its report to investors, Goldman Sachs said the above issues came to light during its recent trip to Ghana to gauge expectations ahead of an IMF programme.

The Ghanaian economy is in a precarious condition with skyrocketing inflation, rising interest rates, and exchange rate depreciation, among others.

As an interim measure to help keep the economy afloat ahead of the conclusion of discussions on an IMF programme, the government had to fall on a $750 million loan facility to help shore up the rapidly dwindling reserves of the Bank of Ghana, which had declined from $9 billion to about $3 billion.

But Goldman Sachs believes this won't be enough as a further delay in securing an IMF programme will lead to further deficit monetisation by the BoG, Cedi depreciation and a sharp decline in foreign exchange reserves.

They also add that the country's macroeconomic outlook may worsen further in the short term.

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IMF Bail Out: Akomea Advises Government To Include Seth Terkper In Negotiations

Earlier, YEN.com.gh reported that a former Communications Director of the governing NPP, Nana Akomea, had called on the government to include the Former Finance Minister, Seth Terkper, in the negotiations for an IMF programme.

He said the former minister under the opposition National Democratic Congress (NDC) government has experience as a former staff of the Fund and as someone who led a similar negotiation in 2015.

Mr Akomea said an efficient negotiation team with the International Monetary Fund should be national in feature. He also advised the government to include labour unions, employers and even people from the opposition NDC.

Source: YEN.com.gh