The International Monetary Fund (IMF) has stated that it is willing to assist Ghana in stabilising its economy.
The IMF’s Managing Director, Kristalina Georgieva, revealed this in a tweet following a meeting with Finance Minister Ken Ofori-Atta.
In July, the IMF completed a fact-finding mission to Ghana, where it met with key stakeholders such as the Vice President, Finance Minister, and the Bank of Ghana.
In a tweet, she said “Constructive meeting w/🇬🇭 Finance Minister Ofori-Atta & his team on Ghana’s economic challenges and the way forward.
We are ready to do our part to help the authorities stabilize the economy, lay the ground for stronger growth & help the most vulnerable.”
Background
Accra: An International Monetary Fund (IMF) staff team led by Carlo Sdralevich visited Accra from July 6 to 13, 2022, to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Program that could be supported by an IMF lending arrangement.
The IMF delegation met with H.E. Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison. The team also met with the Parliament’s Finance Committee, civil society organisations, and development partners, including UNICEF and the World Bank, to discuss social spending.
Mr. Sdralevich stated at the end of the mission that
“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”
