Govt, IMF deliberate comprehensive programme to restore macroeconomic stability

The International Monetary Fund (IMF) says its initial discussions with the government centred on developing a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability.

According to a statement issued by the IMF, progress was made in assessing the economic situation and identifying policy priorities in the near term.

“The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring the credibility of the monetary policy and exchange rate regimes; preserving financial sector stability, and designing reforms to enhance growth, create jobs, and strengthen governance,” the statement said.

The International Monetary Fund (IMF) team led by Carlo Sdralevich that visited the country to assess the prevailing economic situation after the government requested support has concluded its evaluation exercise.

“The IMF acknowledged the challenging situation in which the country finds itself, Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs,” the statement said,

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the COVID-19 pandemic shock and with limited room for manoeuvre. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation,” it said.

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies,” the statement said.

The statement said the IMF staff would continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Programme that an IMF arrangement could support and with broad stakeholders’ consultation.

While in the country, the IMF team met with Vice President Bawumia, Finance Minister Ofori-Atta, and Governor Addison of the Bank of Ghana. The team also met with the Parliament’s Finance Committee, civil society organisations, and development partners, including UNICEF and the World Bank.


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