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Tag: IMF bailout

  • Ghana to exit IMF by April 2026 – President Mahama

    Ghana to exit IMF by April 2026 – President Mahama

    President John Dramani Mahama has reaffirmed that Ghana will exit the IMF by the first quarter of the year.

    This comes after he hinted at an exit in January in his New Year’s message. President Mahama said the government is preparing to exit the IMF programme while safeguarding Ghana’s economic credibility, highlighting that the reforms over the past year have strengthened macroeconomic indicators enough to support a gradual withdrawal.

    He said, “We are beginning the process of exiting the IMF programme with dignity, not as supplicants, but as partners.”

    Speaking at the Ghana-Zambia Business Dialogue in Lusaka on Friday, February 6, President Mahama confirmed that Ghana is on course to complete its International Monetary Fund (IMF) programme by April 2026, citing improvements in key economic indicators.

    Mahama stressed that the stabilising economy positions Ghana to expand trade and investment, particularly under the African Continental Free Trade Area.

    “These gains provide a solid foundation for Ghana’s development agenda, which focuses on five strategic pillars: industrialisation and value addition; export-led growth; modern infrastructure development; strong support for MSMEs, women, and youth entrepreneurs; and a predictable, transparent, investor-friendly business environment,” he said.

    Meanwhile, in late December 2025, it was announced that the Extended Credit Facility (ECF) with the International Monetary Fund (IMF) risks an extension from its initial end date.

    This follows a recent proposal from the IMF Board, which requested a three-month continuation before the programme concludes. Defending its proposal, the IMF Board noted that the extension would provide sufficient time for the implementation of reforms underpinning the sixth and final review of the programme.

    Ghana’s programme with the global lender is scheduled to end in May 2026, following a final review slated for April 2026. However, should the IMF’s recommendations be approved, the programme would be extended through August 2026.

    Part of the IMF report reads, “The extension through August 16, 2026, would help reach an understanding on the policies supporting completion of the 6th review, while allowing sufficient time to prepare and circulate Board documents.”

    So far, Ghana has secured about US$2.8 billion following the successful completion of the fifth programme review. The new development is expected to trigger the release of a sixth tranche of US$380 million. Reacting to the approval, the Minister for Finance, Dr Cassiel Ato Forson, noted that the approval represents meaningful progress in the country’s broader economic recovery agenda.

    IMF’s Resident Representative in Ghana, Dr Adrian Alter, has declared Ghana’s programme “solid and on track”.

    His comments come nearly a month after the IMF Executive Board completed the fifth review of Ghana’s Extended Credit Facility (ECF) arrangement on 18 December 2025.

    During an appearance on Joy News’ PM Express Business Edition on Thursday, January 15, Dr Alter mentioned disbursements and affirmed confidence in Ghana’s economic recovery path.

    “Ghana’s program remains solid and on track, with the fifth review completed and the disbursement made at the end of December,” he said.

    According to him, following a board meeting at which Ghana’s performance was assessed, it was concluded that “the IMF Board has met and approved the programme on December 17 and categorised the overall performance of Ghana as generally satisfactory,” with all indicative and performance criteria targets met and most of the reform agenda implemented.

    He disclosed that total disbursements under the ECF programme had now reached about $2.8 billion.

    “All indicative and performance criteria targets have been met,” Dr Alter said. “Most of the reform agenda has been concluded and implemented.”

    His comments come amid public debate over whether Ghana’s performance under the programme reflects real economic progress or favourable treatment by the IMF.

    Responding to that concern, Dr Alter said the assessment was grounded in measurable outcomes and recent policy actions by the authorities.

    “The authorities implemented strong corrective actions in the aftermath of the 2024 fiscal slippages,” he said, adding that “the 2025 macroeconomic outcomes have been better than expected.”

    He pointed to improvements across key economic indicators.

    “Inflation came down faster than expected,” he said. “Growth exceeded expectations. Reserves have improved. The currency appreciated and stabilised.”

    Dr Alter said the gains were occurring alongside progress on debt restructuring.

    “There are many, many macroeconomic indicators that perform very well at the same time the debt restructuring progress has been advanced,” he said.

  • Ghana passes fifth IMF review, paving way for next disbursement

    Ghana passes fifth IMF review, paving way for next disbursement

    Ghana is set to receive the next tranche of financial support under the $3 billion Extended Credit Facility arrangement, following the successful completion of the fifth review of its International Monetary Fund (IMF) programme.

    This was revealed by the Finance Minister, Dr. Cassiel Ato Forson, on Saturday, October 11, through his official platform on X.

    He wrote, “I am pleased to confirm that the Government of Ghana has reached a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) following the successful completion of the Fifth Review Mission under our three-year US$3 billion Extended Credit Facility (ECF) Programme.”

    According to the Minister, the achievement was made possible because the government passed all the IMF’s key economic tests and met its targets during the review period.

    “This follows our achievement of all six Quantitative Performance Criteria and four Indicative Targets for the review period. This milestone is a powerful validation of the disciplined and comprehensive economic recovery strategy we have pursued over the past nine months,” he stated.

    He emphasized, “We are beginning to see strong outcomes from President Mahama’s Reset Agenda: Economic growth has accelerated, with non-oil sectors, where most jobs are created, showing impressive expansion. Inflation has fallen sharply, returning to single-digit levels, while interest rates have declined significantly.

    “The Ghana cedi has demonstrated notable strength and stability, and our fiscal consolidation efforts are yielding results, reflected in a budget surplus and a substantial reduction in public debt.”

    Recently, the government announced its fifth bilateral restructuring agreement, with the Kingdom of Spain as the latest.

    This was announced by the Finance Minister, Cassiel Ato Forson, on Wednesday, October 8, after signing the agreement with Spain’s Ambassador to Ghana, H.E. Ángel Lossada Torres-Quevedo.

    “On behalf of the Republic of Ghana, I signed a Bilateral Debt Restructuring Agreement with the Kingdom of Spain, represented by their Ambassador to Ghana, H.E. Ángel Lossada Torres-Quevedo. To date, we have concluded five bilateral restructuring agreements with France, Finland, the United Kingdom, China EXIM Bank, and now Spain,” he shared on his X page.

    He added that this signing marks another important milestone in Ghana’s debt restructuring journey.

    Mr. Ato Forson is optimistic that Ghana will complete the process and close this challenging chapter in its economic management history by the end of this year, considering valuable lessons learned from this experience.

    He said the government is determined to maintain sound fiscal discipline and never again “allow ourselves to reach such unsustainable levels of debt.”

    “I remain confident that the measures we are implementing will safeguard our recovery and strengthen Ghana’s resilience,” Ato Forson expressed.

    On behalf of the Government and people of Ghana, Ato Forson expressed deep appreciation to Spain for their cooperation, understanding, and unwavering support throughout this process.

    Meanwhile, the government formally signed a bilateral debt restructuring agreement with the United Kingdom (UK) as part of efforts with the External Creditor Committee to unlock funds for ‘The Big Push’ initiative and other government programs.

    Taking to the X platform on Wednesday, September 24, the Finance Minister, Dr. Cassiel Ato Forson, revealed that the US$256 million deal signed between the two countries is a key step in managing Ghana’s debt better.

    “On behalf of the Republic of Ghana, I signed a Bilateral Debt Restructuring Agreement with the United Kingdom, represented by His Majesty’s Trade Commissioner for Africa, Mr. John Humphrey. The agreement covers about US$256 million and represents another important step in Ghana’s debt restructuring efforts,” he wrote.

    According to the Finance Minister, the UK’s participation will motivate other lenders to act fast and finalize their part of the debt restructuring.

    In addition, Ghana is working with UK Export Finance (UKEF) to reinstate financing for several priority projects, including the Bolgatanga–Bawku–Pulimakom Road Project, the Modernisation of the Komfo Anokye Teaching Hospital (KATH), the Obetsebi Lamptey Interchange and Ancillary Works Project Phase II, the construction of Phase 1 of the Tema–Aflao Road Project, and the Redevelopment and Modernisation of Kumasi Central Market.

    The deal was sealed in Accra on Wednesday, September 24, after UK Export Finance and His Majesty’s Trade Commissioner to Africa, John Humphrey, paid an official visit to Ghana. Also present at the signing ceremony were the UK High Commissioner to Ghana, H.E. Christian Rogg; the Chief Director of the Ministry of Finance, Mr. Patrick Nomo; and other officials.

    A couple of months ago, the government also brought to an end the series of engagements with China geared towards enhancing the debt restructuring efforts.

    Minister for Finance, Dr. Cassiel Ato Forson, who described the meetings as helpful and a big step forward in solving the country’s debt problems, revealed this information in a post on social media on Tuesday, July 1.

    According to him, these talks are part of the government’s efforts to fix the economy, reduce the country’s debt burden, and ensure that the lives of ordinary Ghanaians are protected.

    Dr. Forson added that the progress made in China puts Ghana in a stronger position to complete this difficult process and build a more stable and inclusive economy.

    In April this year, the sector minister announced Ghana’s preparedness to conclude bilateral agreements for the restructuring of its $5.1 billion official bilateral debt by June, a goal that Finance Minister Dr. Cassiel Ato Forson had described as “ambitious.”

    This followed the signing of a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) on January 28.

    This information is outlined in the 2025 Budget Statement and Economic Policy, which highlights Ghana’s fiscal strategies, including debt restructuring efforts aimed at stabilizing the economy.

    Highlighting the importance of this process, the Finance Minister stated, “We look forward to the support of this august House in achieving this objective within the established timeframe.”

    The agreement formalizes the key terms of the restructuring, which were outlined in an Agreement in Principle (AIP) reached on January 12, 2024. It includes an extension of debt service repayments and provides approximately $2.8 billion in debt relief. Additionally, the MoU establishes a cut-off date of December 31, 2022, and imposes limits on disbursements during Ghana’s IMF-supported program from 2023 to 2026.

    The signing of the MoU paves the way for negotiations with individual OCC member countries. As part of the process, Ghana has commenced data reconciliation and validation exercises with several creditors in preparation for the bilateral agreements.

    In addition to official bilateral debt restructuring, the government is engaging commercial creditors, including Chinese commercial lenders, plurilateral institutions, and private banks, to restructure approximately $2.7 billion in commercial debt. Discussions on draft Non-Disclosure Agreements (NDAs) are already underway, with a financial proposal for restructuring expected to be presented soon.

    Furthermore, Ghana’s Domestic Debt Exchange Programme (DDEP), launched in December 2022, has significantly influenced the domestic debt market. The government has relied on short-term securities to finance the budget, raising GH¢45.4 billion in net proceeds from treasury bill issuances.

    The government remains committed to honoring its debt obligations, having successfully paid GH¢19.0 billion in DDEP bond coupons in 2024 and an additional GH¢9.5 billion in February 2025.

    The Finance Ministry believes these efforts, coupled with effective engagement with market participants, will enhance transparency, restore investor confidence, and stabilize the financial market.

  • Ghana to host IMF staff mission for 5th review in September

    Ghana to host IMF staff mission for 5th review in September

    A staff mission with the International Monetary Fund (IMF) will at the end of September 2025 pay a visit to Ghana to conduct the 5th review under the Fund programme. After this review, there will be one more review in April 2026 before the entire programme officially ends in May 2026.

    Earlier this year, Ghana concluded its 4th review. Market analysts are anticipating the coming of the International Monetary Fund mission, they have argued that the assessment will reveal if whether Ghana is on track or not.

    They caution that once Ghana finishes the programme and no longer has IMF supervision, the country might find it difficult to keep government spending and borrowing under control (maintain fiscal discipline).


    In July, the International Monetary Fund (IMF) announced that five banks, including National Investment Bank (NIB)are currently struggling to meet their recapitalisation requirements.


    This was reported by the IMF in its July 2025 Country Report, which shared details with the country’s Fourth Review under the Extended Credit Facility, along with assessments of Ghana’s banking sector, fiscal performance, and debt sustainability.


    “…a few banks (including one state-owned) are materially behind on their recapitalisation schedule due to slow progress against shareholder capital commitments, higher NPLs, and/or delayed booking of credit impairments and required provisioning identified under the BoG’s 2023 asset quality assessments” parts of the report revealed.


    Recapitalisation requirements refer to the minimum amount of money (capital) that a bank is required to have to stay financially strong and stable to avert a collapse despite incurring losses.


    The report also noted that banks that are currently still struggling with recapitalisation requirements are under intensified monitoring by the Bank of Ghana (BoG) and are subject to corrective measures aimed at accelerating their recapitalisation plans to achieve a CAR of 13% by the end of March 2025.


    “Parliamentary approval and implementation of the World Bank-funded segment of the GFSF could help some banks achieve CAR targets by end-2025, provided that they secure capital injections sufficient to reach capital levels eligible for access,” the Fund projected.


    The IMF further emphasized that “stepped-up efforts to improve the crisis management and resolution framework, enhance financial-sector safety nets, and address legacy issues at the specialised deposit-taking institutions are also important.”


    According to the reports, about 13 banks that faced capital deficits after the implementation of the Domestic Debt Exchange Programme (DDEP) by the erstwhile government have now met their requirements, with some even exceeding their recapitalization requirements as of the end of 2024.


    The IMF believes that these banks are performing well and on track due to increased profits and support from the Ghana Financial Stability Fund (GFSF)—a net fund that was set up in August 2023 under the Akufo-Addo-led administration to support financial institutions affected by Ghana’s DDEP.


    It also says these banks are likely to reach the required safety level of 13% (called the Capital Adequacy Ratio, or CAR) on their own—without needing extra help—by the end of 2025.


    “The Bank of Ghana has implemented risk containment measures to support banking system stability. It appropriately intensified monitoring and escalated measures at weak, undercapitalised banks to promote timely recapitalisation.

    “The Ghana Financial Stability Fund (GFSF), established in August 2023, has provided targeted support to banks, contributing to improved profitability and recapitalisation progress,” the report noted.


    The IMF stated that the government is working to support the struggling banks as part of efforts to strengthen the country’s financial stability.


    “The authorities have taken intensified actions to address undercapitalised banks. Looking ahead, further strengthening financial sector stability requires fully implementing the plan to strengthen NIB, finalising the reform strategy to support state-owned banks’ viability and sustainability, and developing contingency plans to address weak banks that fail to recapitalise,” the report stated.


    Earlier reports indicated that 15 out of 21 banks had recorded losses as a result of the Domestic Debt Exchange Programme.

    Finance Minister Dr Cassiel Ato Forson has announced the government’s decision to recapitalize National Investment Bank (NIB), Agricultural Development Bank (ADB) and Consolidated Bank Ghana Limited (CBG).


    Fuller details of this comprehensive recapitalization plan will be unveiled during the upcoming mid-year review, Dr Forson noted in a post on X on July 9.


    In May last year, the erstwhile government earmarked GH¢2.3 billion for the recapitalization of the National Investment Bank (NIB).


    “As part of the implementation of the Post Covid-19 Programme for Economic Growth (PC-PEG), Cabinet has approved the plan for restructuring and recapitalization of the National Investment Bank (NIB),” the former Finance Minister Dr. Mohammed Amin Adam said.


    The recapitalization plan was to involve a programmed equity injection of about GHS2.3 billion over a year, with the first tranche of GHS400 million expected to be transferred to NIB before the end of May last year.


    This initiative was critical to strengthening the governance structure, enhancing operational efficiency, and improving risk management to ensure the financial viability of NIB.

  • IMF to approve $360m for Ghana on Dec 2 – Finance Minister

    IMF to approve $360m for Ghana on Dec 2 – Finance Minister

    Finance Minister Dr. Mohammed Amin Adam has announced that the International Monetary Fund (IMF) Board will convene on December 2, 2024, to review Ghana’s Third Programme.

    This review could facilitate the release of $360 million to the Bank of Ghana, aimed at addressing the government’s budgetary and balance of payment needs.

    The upcoming board meeting follows a staff-level agreement reached with the government earlier this month, coinciding with the IMF’s visit to assess data through June 2024. Dr. Amin Adam stated, “This disbursement by the IMF Board will bring the total funds received since Ghana signed up for the IMF programme to $1.92 billion”.

    He shared this information at a press briefing in Washington, DC, during the Annual IMF/World Bank Meetings, emphasizing that Ghana has fulfilled all prerequisites for approvals and disbursements under the IMF programme.
    Economic Implications

    Dr. Amin Adam expressed optimism regarding the forthcoming $360 million from the IMF, alongside an additional $300 million from the World Bank, which he believes will bolster Ghana’s reserves and help stabilize the Ghanaian cedi heading into the new year. He reassured businesses, stating, “The Bank of Ghana already maintains strong reserves, and these additional funds will position the Central Bank well to stabilize the cedi. There’s no need for businesses to worry about foreign exchange availability.”

    He further emphasized that the significance lies not just in the funds from the IMF but also in the positive signal it conveys to investors about the government’s efforts to stabilize the economy.

    The Finance Minister also highlighted the encouraging feedback from investor meetings in Washington, where participants expressed interest in Ghana’s economic reforms.

    “We must remember that the Bank of Ghana already has strong reserves, and these additional inflows will put the Central Bank in a solid position to stabilize the Ghana cedi,” Dr Amin Adam added.

    “There is no need for businesses to panic regarding the availability of foreign exchange to meet their demands.”

    “For us, it’s not just about the funds coming from the IMF, but rather the signal it sends to investors that the government has taken the necessary steps to stabilize the economy,” the Minister explained.

    Addressing concerns regarding the government’s economic management over the past four years, Dr. Amin Adam declared, “Ghana’s economy has strongly recovered compared to two years ago. We’ve seen tremendous progress in growth, exchange rate stability, and inflation.”

    He added, “We have performed exceptionally well in managing the economy.”

    Dr. Amin Adam welcomed the IMF’s updated growth forecast for Ghana, which has been adjusted from 3 percent to 4 percent for 2024.

    He acknowledged that the IMF’s latest World Economic Outlook, based on data from mid-April 2024, anticipates improvements by year-end.

    “We believe Ghana will exceed the revised 4 percent target due to recent investments starting to yield results,” he asserted, although he mentioned that the government will retain the original 3 percent growth projection in the 2024 Budget for the time being.

  • IMF to finalize third review of Ghana’s program by December

    IMF to finalize third review of Ghana’s program by December

    Finance Minister, Dr. Mohammed Amin Adam, has announced that Ghana’s third review for the approval of the fourth tranche of the IMF loan is expected to be completed by the end of December 2024.

    He stated that this review would pave the way for the IMF Board to promptly disburse the fourth tranche of $360 million, bringing the total disbursements to $1.92 billion.

    Speaking during the Finance Ministry’s monthly economic update in Accra on August 29, 2024, Dr. Adam highlighted that preliminary data for the first half of 2024 shows that Ghana is on track to meet the targets for the third review.

    He emphasized that the IMF Executive Board is anticipated to consider the review by the end of December, enabling the immediate disbursement of the funds.

    He also mentioned that the government successfully concluded the second review of the program on June 28, 2024, receiving strong endorsement from all IMF Executive Directors.

    “For the third review, the IMF has programmed a staff mission for the period September 24 to October 4, 2024, to, among others assess the performance of the country in relation to the performance targets agreed with the Fund under the programme.

    “The review will assess the Six (6) Quantitative Performance Criteria (QPCs), Four (4) Indicative Targets (ITs), and a number of Structural Benchmarks (SBs) due by the end of June 2024 and those due before the Board date for the 3rd Review,” he added.

  • Africa to gain third seat on IMF board beginning Nov 1

    Africa to gain third seat on IMF board beginning Nov 1

    The Board of Governors of the International Monetary Fund (IMF), the highest decision-making body within the organization, has approved a new resolution to add a 25th chair to the IMF’s Executive Board, specifically representing Sub-Saharan Africa.

    This decision came in response to a request from the International Monetary and Financial Committee during the 2023 Annual Meetings in Marrakech. The aim is to enhance the representation and influence of Sub-Saharan Africa and ensure better regional balance on the Board.

    IMF Managing Director Kristalina Georgieva commented, “The Board of Governors has taken a significant step toward establishing an additional 25th chair at our Executive Board.

    “The Board of Governors have taken an important step towards creating an additional 25th chair at our Executive Board to increase Sub-Saharan Africa’s representation in IMF decision making, to make our Board more inclusive, and to reflect the region’s role in the global economy,” the IMF Managing Director, Kristalina Georgieva said.

    To expand the Executive Board, the resolution required an 85 percent majority of the total voting power and successfully surpassed this threshold.

    The new Executive Board, consisting of 25 Executive Directors, will begin its term on November 1, 2024.

  • IMF ‘warns’ Ghana to stick to bailout programme

    IMF ‘warns’ Ghana to stick to bailout programme

    The International Monetary Fund (IMF) has underscored the significance of Ghana’s unwavering dedication to its bailout program to fully reap its benefits.

    The institution has stressed the need for the effective implementation of structural reforms, especially after disbursing the $600 million second tranche to the government.

    However, Ghana faces the challenge of reconciling anticipated revenue shortfalls due to the planned suspension of the VAT on electricity, following strong opposition from the Trades Union Congress (TUC).

    Despite this, the IMF’s Director of the African Department, Abebe Selassie, emphasized the crucial nature of adhering strictly to the agreed-upon austerity measures to navigate the economic crisis.

    Speaking in a webinar on February 5 from Washington, DC, Mr Selassie highlighted the importance of Ghana continuing to implement the program as envisioned.

    He stated, “These programs are designed to be implemented over three or four years, and it is important that Ghana sticks to the course and sees the program being implemented over the next three years.”

    Despite the challenges, Mr Selassie acknowledged Ghana‘s positive performance within the program, with reforms yielding results and signs of economic stabilization becoming evident.

    He noted that Ghana’s program is being implemented effectively, and official creditors are signalling their support, including debt relief consistent with Ghana’s needs.

    In late January, the Bank of Ghana confirmed the receipt of $600 million as the second tranche intended for budget support and currency stabilization, bringing the total disbursement to $1.2 billion out of the approved $3 billion under the three-year extended credit facility granted in May 2022.

    The next review of Ghana’s IMF program is scheduled for June 2024, aiming to secure the third tranche of around $360 million. The IMF’s encouragement for Ghana to adhere to the bailout program’s guidelines underscores the country’s ongoing efforts to navigate economic challenges and implement necessary reforms.

  • $2.4b bailout package for Ghana will be paid in every six months – IMF

    $2.4b bailout package for Ghana will be paid in every six months – IMF

    The International Monetary Fund (IMF), has indicated that the remaining $2.4 billion bailout package for Ghana will be disbursed in installments every six months following program evaluations.

    In September 2023, a team from the IMF will visit Ghana, with an expected allocation of $600 million to assist with the country’s balance of payments.

    During a Question and Answer session at a recent IMF event, Julie Kozack, the Director of the IMF Communication Department, confirmed that the formal first review mission is scheduled for September 2023.

    Kozack reiterated that the objectives of the IMF program for Ghana encompass three main goals: restoring macroeconomic stability, ensuring debt sustainability, and establishing the groundwork for higher and more inclusive economic growth.

    The program also incorporates comprehensive reforms aimed at enhancing resilience while safeguarding the most vulnerable segments of the population.

    Regarding the next steps for debt restructuring, Madam Kozack stated that it is the responsibility of the official creditor committee to reach an agreement with the Ghanaian government on the specific modalities of debt relief. Furthermore, she emphasized the importance of the authorities’ continued engagement with external private creditors to seek relief for their external debt.

    She further mentioned that the government is in the final stages of restructuring its domestic debt. In June 2023, a staff team conducted a routine technical program engagement visit to Accra from June 8th to 15th. The formal first review mission is scheduled to occur in the coming fall.

    Ghana obtained an IMF program in May 2025, followed by the initial disbursement of $600 million as the first installment of the Extended Credit Facility (ECF) program.

  • IMF bailout: By December 2023, all ministries’ and departments’ accounts must be transferred to a single treasury

    IMF bailout: By December 2023, all ministries’ and departments’ accounts must be transferred to a single treasury

    All accounts of Ministries, Departments, Agencies, and Statutory Funds are to be transferred to a single Treasury Account as part of Ghana’s Economic Recovery Programme presented to the International Monetary Fund.

    This is to be done by the end of 2023.

    According to reports, the move is part of efforts to fully implement the Treasury Single Account programme.

    This is to merge all accounts of all government institutions into a single account at the Central Bank for proper management and monitoring.

    The move is also to reduce or address the issue of domestic borrowing which leads to a crowding out of the private sector.

    This plan was contained in Ghana’s Economic Programme (PC-PEC) sent to the IMF as part of expected treasury reforms that government will undertake under the 3-year programme.

    Ghana’s Public Financial Management Act 2016 stipulates for the establishment of a Single Treasury Account as a unified structure of government accounts that enables the consolidation of all amounts of money received by covered entities.

    Ghana is currently running an economic recovery programme with the IMF aimed at restoring macroeconomic stability among other problems.

    The programme is also to ensure the restructuring of Ghana’s high debts and push the country back to sustainable levels.
    After the reception of the first tranche of the $ 3 billion IMF loan, Ghana’s local currency has been upgraded from Ca to Caa3.

    The local currency has also seen some stability in the past few weeks.

  • IMF Deal: Here is the letter earlier written by Ofori-Atta, Dr Addison about liquidity support

    IMF Deal: Here is the letter earlier written by Ofori-Atta, Dr Addison about liquidity support

    Finance Minister Ken Ofori-Atta and Bank of Ghana Governor Dr. Ernest Addison had earlier written to Kristalina Georgieva, the IMF Managing Director, back on May 1, 2023, requesting that the country’s request for a bailout package be expedited following the approval of Ghana’s loan request for a $3 billion bailout from the International Monetary Fund.

    On May 19, 2023, the Bretton Woods institution credited the first tranche loan facility consisting of $600 million into the Central Bank’s account. The funds are expected to support Balance of Payment transactions and stabilise macroeconomic indicators.

    See the letter below:

    Dated: May 1st, 2023

    Dear Madame Georgieva:

    Following three years of strong and sustained macroeconomic performance, Ghana has been hit by major external shocks over the period 2020-22. These have heightened pre-existing vulnerabilities and pushed the economy into crisis. In particular, the twin impacts of the COVID-19 pandemic and the war in Ukraine have weakened public finances significantly and contributed to a rapid and steep increase in inflation. These shocks have also been compounded by a tightening of financing conditions both globally and locally, which in turn, have compromised efforts at attaining fiscal and debt sustainability. These developments have eventually resulted in a loss of international market access and increasing difficulties in rolling over maturing domestic public debt instruments, thus accelerating the negative feedback loop of decreasing international reserves, Cedi depreciation, rising inflation, and plummeting investor confidence, and making our public debt unsustainable.

    Faced with this difficult situation, we have laid out a strong program to restore macroeconomic stability and lay the foundation for strong and more inclusive growth. Key areas of focus of our Post-Covid-19 Program for Economic Growth (PC-PEG) include ensuring public finance sustainability while protecting the vulnerable, bolstering the credibility of monetary and exchange rate policies to reduce inflation and rebuild external buffers, preserving financial sector stability, and taking extraordinary steps to promote entrepreneurship and private investments (domestic and FDI) to establish a dynamic export-driven economy and accelerate growth as a strong platform for the AfCFTA, while also ensuring further improvements in governance and transparency of the public sector.

    We have already taken several important steps as part of the PC-PEG. Parliament has approved the 2023 budget which has jump-started our ambitious and frontloaded fiscal consolidation program, including through ambitious revenue measures. We have also launched and now implementing a comprehensive debt operation, which, together with our fiscal program, will put public finances and debt back on a sustainable path. We have taken steps to strengthen expenditure commitments controls. We have raised electricity tariffs as an essential step toward a full cost-recovery pricing regime, with a view to reducing the energy sector financial shortfall and ensuring the financial sustainability of the energy sector. The government and the Bank of Ghana have signed a Memorandum of Understanding (MOU) to end monetary financing to help reduce inflation. The Bank of Ghana has also tightened its monetary policy stance significantly in recent months and is committed to maintaining the appropriate policy stance to help steer inflation back to the medium-term target band of 8 ± 2 percent. As part of our efforts to enhance fiscal transparency and public sector accountability, the Auditor General has prepared and published an audit report on COVID-19 spending.

    To support our objectives, we wish to request a 36-month arrangement under the Extended Credit Facility (ECF), with access at 304 percent of our SDR quota (SDR 2.242 billion) to be disbursed as budget support. Along with support from development partners and financing provided through the comprehensive debt restructuring that has been launched, the proposed financing arrangement will cover our fiscal and external financing gaps as we embark on a multi-year adjustment effort.

    We believe that the policies and actions set out in the attached Memorandum of Economic and Financial Policies (MEFP) underpinned by the PC-PEG will enable us to achieve our program objectives. The proposed arrangement will be monitored through a series of quantitative performance criteria and indicative targets. It also includes a series of prior actions and structural benchmarks covering reform areas that are critical to bolster macro-economic performance and continuous performance criteria related to exchange restrictions and multiple currency practices in the context of the Article VIII. The government is committed to providing the IMF with information on the implementation of the agreed measures and the execution of the program, as provided for in the attached Technical Memorandum of Understanding (TMU).

    Should further measures be necessary, we will consult in advance with the IMF on their adoption, in accordance with applicable IMF policies. We are committed to working closely with IMF staff to ensure that the program is successful, and we will provide the IMF with the relevant information necessary for monitoring our progress.

    We fully recognize the importance of completing an updated safeguards assessment of the Bank of Ghana before completion of the first review under the ECF. An IMF mission to conduct the safeguards assessment took place over March-April 2023. The Bank of Ghana provided Fund staff with all necessary information in preparation for that mission.

    Consistent with our commitment to transparency in Government operations, we agree to the publication of all the documents submitted to the IMF Executive Board in relation to this request.

    Sincerely yours,

    /s/ Kenneth Ofori-Atta Minister for Finance /s/ Ernest Kwamina Yedu Addison Governor, Bank of Ghana Cc: Secretary to the President, Jubilee House, Accra

  • Government introduces taxes quickly, but rarely accounts for them – Dr Asah-Asante

    Government introduces taxes quickly, but rarely accounts for them – Dr Asah-Asante

    The government, according to Dr. Kwame Asah-Asante, is fast to propose new tax bills but are unable to give specific accounting of the money collected through these levies.

    “The issue is that, are we going to be able to manage the resources so well that will be derived from this revenue? We have seen it time and again that our leaders are quick to come out with tax or taxes, but the money generated from it, we find it difficult to account for them,” he said on Monday.

    On March 31, Parliament approved three new tax bills proposed by the Finance Minister, Ken Ofori-Atta.

    According to Mr Ofori-Atta, the bills are crucial for the progress of government’s pursuit of an International Monetary Fund (IMF) deal.

    The new tax bills include; the Income Tax Amendment Bill, The Excise Duty Amendment Bill and the Growth and Sustainability Amendment Bill and are expected to rake in close to GHs4 billion.

    Speaking on the AM Show on JoyNews’, Dr Asah-Asante reiterated that the passing of the bills “is a good beginning for our journey to the IMF” but indicated that those in charge have not been accountable.

    The political scientist lamented citizens’ inability to demand accountability and as a result, government always slaps taxes on the people without disclosing details of revenues gained.

    Meanwhile, he added that the government’s energy that is being used to make sure that it gets the basics right in securing an IMF deal could be channelled into creating home–grown solutions where there would be no need to seek an IMF bailout.

    “If you look at how government wants to meet all the specifics directed by the IMF, right? They want to get all those basics right to have the facility.

    “Then I ask myself; that energy that you derive from the system to pursue this programme, couldn’t you have used it in your economy, build the necessary capacity that you don’t go to the IMF,” he said.

    According to him, Ghana always finds itself “in tears” as a result of some unfavourable conditions attached to the IMF deal.

  • Government urged to control expenditure, invest in productive sectors

    Some residents in the Cape Coast Metropolis have called on the Government to be tactful with its expenditure and invest in productive ventures to spur economic growth.

    Speaking in separate interviews with the Ghana News Agency, the residents said the Government’s move to halt the depreciation of the Cedi should work at all costs.

    Mrs. Gladys Baidoo, a banker, said the country’s prudent management of scarce economic resources through technology remained the ultimate goal to save it from the difficulties.

    “It is, therefore, important for government to improve its financial management and budgeting practices to create the environment which could support the possibility for prudent and sustainable borrowing for public infrastructure and services at the local level,” she stated.

    In addition, she praised efforts to support Metropolitan, Municipal and District Assemblies (MMDAs) to step up their revenue mobilization to improve development at the local level and reduce their dependence on the central government.

    “The huge potential in property rate collection remains untapped. There are many property owners who are yet to pay any rate to the Assemblies because the Assemblies have not yet approached them to collect the rates.

    “The MMDAs must, therefore, find innovative ways of mobilizing resources in an equitable and efficient manner,” she urged.

    Mr. Jones Kofi Darko, an entrepreneur, also commended the President for the resolve to ban the imports of some goods that could be produced locally to revive the local industrial sector.

    He said a country’s development, depended on its level of industrialization, however, any nation that neglected that sector will be a burden to itself and its people, as it will have to depend on the importation of all kinds of goods at great cost to meet the needs of its populace.

    It was for this reason, he noted, that in the immediate post-independence period, Ghana set out to build some industries for rapid development.

    As a result of the resolve to speed up the country’s progress, the Tema industrial township was built, in addition to the creation of industrial enclaves in Accra and many parts of the country.

    Many private individuals and companies also set up industries which provided hope for the future of the new independent country which was the envy of many a country on the continent and beyond.

    Nevertheless, decades down the line, however, many of the manufacturing establishments, that provided the youth with job opportunities everywhere, have become “ghosts” and trading activities have taken over, defeating the country’s attempts at import substitution.

    On the country’s negotiation with the International Monetary Fund (IMF), Mr. Daniel Danso, an educationist, said the whole of Ghana seemed to be waiting for the ‘presumed saviour IMF’ that has not been able to save us on its 16 previous occasions.

    “The Government opting for an IMF programme will not address the current difficulties but would rather worsen them.

    “The impact of the IMF programme would be worse than the reliefs the country would be seeking,” he said.

    Mr. David Annan, a driver, asked President Akufo-Addo to redeem his promise to transform Ghana in 18 months if voted.

    “Yes, he promised to turn around the fortunes of Ghana and create opportunities for all and he charged all of us to be citizens and not spectators.

    “A significant number of us citizens associated the promises with good and noble intentions in return and despite our best efforts, the Ghanaian people have offered the NPP a clear mandate in 2017 to steer the affairs of our dear country but with nothing to show for,” he said.

    Source: GNA 

  • IMF isn’t the permanent solution to our economic woes – Apostle King Mashal

    A Kumasi based popular man of God, Apostle Dr. Dirl Airl King Mashal has said government’s decision to seek an International Monetary Fund (IMF) bailout is not a permanent solution to Ghana’s economic woes.

    According to the Apostle who is the founder and leader of the Soldiers of Christ Prayer Group of All Churches, God has through a prophecy revealed to him, a key that could help President Akufo-Addo unlock economic potential.

    Apostle King Mashal who was speaking to the correspondent in reaction to the public views on whether the IMF loan can possibly deliver the country from its economic predicaments or not indicated that borrowing from external sources is not the plan of God for Ghana to build a prosperous economy.

    He noted that the current economic crisis is spiritual.

    According to King Mashal God has revealed to him on 8th, 9th and 11th July 2022 the key to economic freedom.

    He said the President should invite him (King Mashal) to the Flagstaff house to show him (Nana Addo) the said key God has revealed to him.

    Giving Bible references to justify his prophecy on how God freed the Israelites at the time the country was in difficulties under Prophet Elijah, Apostle Mashal cited 1st Kings 17-1 to 16 and 2nd Kings7- 1 to 2.

    Apostle Dr Airl Dirl King Mashal allegedly recalled that when the country was in crisis during the regimes of the late John Jerry Rawlings and the sitting ex-President John Agyekum Kufour, God revealed a secret key to him.

    He claims both Presidents sent down delegates to him for the key to help tackle the problems the country faced.

    According to him, President Akufo Addo can find out from the former Ashanti Regional Minister, Hon S.K. Boafo who was also a former Member of Parliament for Subin Constituency in the Ashanti Region who President Kufour delegated to see him for details.

    Source: Modernghana