An economist and finance lecturer at the University of Ghana Business School has questioned the government’s ability to secure a bailout from the International Monetary Fund (IMF) before the end of the year.
According to him, achieving the goal will be “difficult,” but he agrees that the government may only strike a staff-level agreement with the Fund.
He noted that many formalities must be completed before a settlement can be made.
“I’m a bit moderate on this also given what the Managing Director of IMF said a couple of months ago, that a deal by the end of this year will be reached.
“We will hold her to that, but if you look at the processes that we have to go through in having a programme approved finally by the Executive Board, it looks very challenging.
“Probably it is more like a staff-level agreement with the Fund could be reached before the year ends,” he said when he spoke on the Super Morning Show on Joy FM on Thursday.
The government has stated that it will expedite negotiations with the IMF in order to guarantee that major components of the program are represented in the 2023 budget statement, which is due to be presented to Parliament in November.
At a press conference on Wednesday, September 28, Finance Minister Ken Ofori-Atta stated that this is the government’s priority.
The IMF has also stated that it will expedite measures to guarantee that the government meets its objectives.
Abebe Selassie, the IMF’s Head of the African Department, announced this during the presentation of the African Economic Outlook Report in Washington, DC on the margins of the Annual IMF/World Bank meetings.
Mr. Selassie reiterated the IMF’s commitment to working with Ghana, stating that the Fund swiftly assembled a mission when Ghana requested assistance.
“I can tell that we are doing our best, and will do our utmost to ensure that we can provide support for Ghana as quickly as possible”, he said.
“We will do our best to avoid any delays when it comes to Ghana’s programme”, he added.
https://7cdbad9a159b7458effe53907884bd47.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html The government and the Fund have now completed the second phase of negotiations.
Despite this, Professor Bokpin believes there is still much work to be done.
