The prospect of an expedited International Monetary Fund (IMF) deal was given another boost this week as the United Kingdom, Germany and France pledged to support the Ghanaian Economy through the current crisis period.
These financing commitments, came on the back of closed-door bilateral meetings hosted by the Government of Ghana delegation.
In an exclusive interview with the Daily Graphic, the Finance Minister highlighted that “Ghana still has great strengths to build on, as our productive sectors are still growing, expenditures are being contained, and the formal conclusion of IMF negotiations should support our balance of payments position. Consequently, our bilateral partners are demonstrating increased support for our recovery plan.”
Negotiations with the IMF are set to continue over the coming week as the Ghana delegation outlines the broad policy anchors for the Government’s flagship “Post-COVID Programme for Economic Growth” (PC-PEG).
The PC-PEG referred to in the 2022 Mid-Year Budget Statement as the Enhanced Domestic Programme (EDP), contains a set of time-bound structural reforms and fiscal consolidation measures to place Ghana’s debt levels and fiscal accounts on a sustainable path over the medium term.
A combination of IMF assistance, structural reform programmes, and increased bilateral support are expected to ease existing macroeconomic imbalances over the next few months.
Like many other countries, Ghana is operating amid a confluence of adverse shocks heightened by debt vulnerabilities.
Consequently, the completion of IMF negotiations in a timely manner continues to dominate the Government’s agenda.
Mr Ofori-Atta is in Washington D.C. to attend the Annual Meetings of the World Bank and the IMF, meet with key bilateral partners, and continue negotiations with the Fund for support for Ghana’s Economic Programme.