Minister for Finance Ken Ofori-Atta has indicated that formal negotiations for an International Monetary Fund (IMF) support programme will be fast-tracked to ensure that key aspects of the deal are reflected in the 2023 Annual Budget Statement to be presented to Parliament in November this year.
Government, according to reports, is hoping to get a balance of payment support of at least $3 billion to cushion the Ghanaian economy following the devastating effects of COVID-19 pandemic and the Russian-Ukraine war.
“The formal negotiations for a Fund-supported programme began on Monday September 26th, 2022 and discussions are advancing smoothly.
“The IMF Mission will cover a period of 10 days; and in line with 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”, Mr. Ofori-Atta stated.
The Finance Minister announced this when he addressed the media on Wednesday on the ongoing discussions with the Bretton Woods Institution.
Mr. Ofori-Atta said “government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection”.
Debt sustainability analysis
The Finance Minister noted that having a sustainable debt path is a pre-requisite for the IMF programme.
He said the IMF/World Bank and the Ghana team are currently undertaking a debt sustainability analysis (DSA) to inform the programme negotiations.
“In addition, the IMF and government team are working to update the medium-term macro-fiscal framework to inform IMF programme design”.
Government and the IMF, Mr. Ofori-Atta added, “are discussing policy measures and structural reforms proposed in our economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection.
“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-tract the IMF negotiation process”.
Vibrant financial sector
Mr. Ofori-Atta said Ghana “needs a viable domestic financial system to support its development programme, especially in these three years with limited access to the International Capital Market.
“Therefore, everything must, and will be done, to protect our financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both our domestic and external investors.
“Ghana has always had a collaborative approach with its partners and we shall, I am confident, come out with an ‘historic arrangement’”.
