Government of Ghana and the International Monetary Fund (IMF) will resume negotiations this week in Accra on the country’s request for balance of payment support to stabilise the country’s currency and rebound the economy.
An IMF team will be in the country from December 1–13 to help provide more clarity on the policies and programmes of an economic support of about $3 billion, which is expected to curb the current inflationary spiral and depreciation of the local currency, the cedi against the major trading currencies.
According to a statement, the IMF team is being led by the IMF Mission Chief to Ghana, Stéphane Roudet.
The IMF indicated that the team will continue discussions with the government on the country’s post-COVID programme for economic growth and associated policies and reforms that could be supported by a new IMF lending arrangement.
“Our objective for this visit is to make further progress toward reaching agreement on policies and reforms that could be supported by an IMF lending arrangement.
“The IMF remains fully committed to help Ghana restore macroeconomic stability, bring relief to Ghanaians in this time of crisis, and lay the foundation for more inclusive growth,” Mr. Roudet explained.
High inflation
Ghana requested a fund-assisted programme in July after the cedi came under intense pressure and prices of goods and services soared to record highs.
Inflation hit a 21-year high of 40.4 per cent and the cedi lost more than 53 per cent of its value to the US dollar in October this year.
A debt restructuring exercise is underway to bring the debt to sustainable levels to allow for the fund-assisted programme.
Following the request, about three rounds of negotiations have been held in Accra and Washington D.C. in the United States of America (USA).
The government is confident that a staff-level agreement will be secured this year to pave the way for the crucial Executive Board level approval early next year.
Fruitful discussions
IMF Mission Chief to Ghana Mr Roudet said in the statement that the IMF has had productive discussions with the government over the last few months and looked forward to the impending one in Accra.
“IMF staff will also further engage with other stakeholders during the visit,” the fund added
