Honestly, the IMF programme won't solve all Ghana's problems...At the end of the day, if we all, as citizens, and government including SOEs execute our duties effectively; I believe the IMF conditionality won't have any effect on us.
These were the words of the Deputy Minister for Information, Fatimatu Abubakar, after the International Monetary Fund (IMF) on Wednesday, May 17, 2023, approved a $3 billion loan for Ghana.
The programme, endorsed by the IMF board is spread over 36 months under the Extended Fund Facility.
It aims at restoring macroeconomic stability and debt sustainability, as well as implementing wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth,
Managing Director Kristalina Georgieva said Fiscal consolidation is a central element of the programme as is preserving financial sector stability.
Furthermore, monetary and exchange rate policies under the programme will focus on inflation control and rebuilding foreign exchange reserves.
Weakened by the repercussions of the war in Russia-Ukraine, Ghana called on the IMF and in December reached a pre-agreement with the institution to obtain 3 billion dollars in loans spread over three years and conditional on the implementation of economic reforms.
This crisis, the worst in decades, has forced President Nana Addo Dankwa Akufo-Addo to reverse his past positions by turning to the IMF to stave off the specter of default raised by some economists.
The first tranche of IMF cash to support the country's balance of payment hit the Bank of Ghana's account.
Part of the first tranche will come in by Friday March 19, 2023, while the remaining should be disbursed by June 2023.
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