Ghana’s negotiations with the International Monetary Fund over a rescue package will be fast-tracked.
This was disclosed in a press briefing on the economy released by Finance Minister Ken Ofori-Atta on Wednesday.
Following Ghana’s request for a loan from the IMF in July, IMF staff members are currently debating policies and reforms with representatives from the country’s finance ministry and central bank.
The government of Ghana, a significant producer of cocoa and gold, has been battling to rein in spiraling inflation, cut down on government spending, and support the local currency. By the end of June, it had a balance-of-payments deficit close to $2.5 billion, up from about $935 million in March.
What you should know
He said, “The IMF Mission will cover 10 days; and in line with H.E. the President’s dialogue with the IMF Managing Director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022.”
He added that the Government is committed to ensuring that a comprehensive package is negotiated to restore and sustain macroeconomic stability, ensuring durable and inclusive growth and promoting social protection.
The Minister for Finance and Economic Planning of Ghana stated that government had not come to any agreement with the Fund on the parameters of debt operations, but that a committee would be formed in the coming days to engage financial sector stakeholders on how to proceed.
“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis. Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-track the IMF negotiation process.”
Credit rating agency Fitch downgraded Ghana from “CCC” to “CC” last week as a result of rumours that the government may be mulling a strategy to restructure its local currency debt.
