The International Monetary financial (IMF) has urged Ghana not to depart from its financial programme in order to fully benefit from the continuing bailout package.
The Fund requires effective implementation of structural reforms following the release of the $600 million second tranche, at a time when the government is said to be considering engagements with the IMF to reach an agreement on the anticipated revenue shortfall resulting from the planned suspension of the electricity VAT.
However, the IMF requires that Ghana stick to the agreed-upon austerity measures in order to navigate its way out of the economic crisis.
“What I can say is that going forward, it would be really, really important that Ghana continues to implement the program that they have developed as envisaged. That is really critical. These programs are designed to be implemented over three, four years. And it is important that Ghana sticks to the course and sees the program being implemented over the next three years,”
Abebe Selassie, Director of the IMF’s African Department, has been lecturing about Ghana’s program in Washington, DC.
In late January, the Bank of Ghana announced the receipt of US$600 million as the second tranche for budget support and local currency stabilization, bringing the total to US$1.2 billion out of the $3 billion agreed under the three-year extended credit facility in May 2022.
The IMF has declared that Ghana is doing well under the program, with reforms yielding fruit and signs of economic stability appearing.
“Ghana’s program is being implemented effectively. We just went to the board recently with the first program review following, of course, the policies that the government has been putting in place to address the huge imbalances Ghana was facing through last year. And of course, the official creditors are signaling that they will provide debt relief, consistent with what Ghana needs. So, we just went to the Board a couple of weeks ago. We look forward to continuing to support Ghana, consistent with program implementation,” Abebe Selassie added. Ghana’s next IMF program review is slated for June 2024, for the third tranche of around US$ 360 million.
