The International Monetary Fund (IMF) and the government team working on an IMF support programme say they have made good progress in identifying specific policies that would restore macroeconomic stability and lay the foundation for stronger and more inclusive growth.
“Following several visits in recent months to engage with the authorities on their homegrown reform programme and broader stakeholders’ consultation, a Ghanaian delegation visited Washington, DC to continue discussions on policies and reforms that could be supported by an IMF lending arrangement,” the IMF said on its question and answers published on its website.
It said the Ghanaian delegation and IMF staff had fruitful discussions on the authorities’ post-COVID programme for economic growth and reforms that could be supported by a new IMF arrangement.
The IMF said discussions would continue in the weeks ahead, with a follow-up mission to take place expeditiously.
On weather Ghana needed debt restructuring, he said the IMF and World Bank still needed to conduct a thorough update of the debt situation through a new Debt Sustainability Assessment (DSA), which will then be presented to our Executive Board when it considers the authorities’ programme request.”
“When a member country requests financing from the IMF, the Fund assesses whether the country’s policies are consistent with debt sustainability. This assessment is based on a DSA conducted jointly by the IMF and World Bank, to determine whether the government is able to meet all its current and future payment obligations.”
The DSA it said was forward-looking and considers steps being taken by the member to ensure sustainability over the medium term.
“In cases where a country’s debt is assessed as unsustainable, the IMF is precluded from providing financing unless the member takes steps to restore debt sustainability, including by seeking a debt restructuring from its creditors,” it said.
BY KINGSLEY ASARE