TIG Post

Tag: International Monetary Fund (IMF)

  • Budget agreement with the IMF before 2023 is feasible – Richmond Atuahene

    The government could be successful in including significant provisions of its agreement with the International Monetary Fund (IMF) in the budget statement for 2023, according to economist and banking expert Richmond Atuahene.

    He says, if the government puts in enough effort and is timely in its public negotiations, it will be possible to conclude negotiations before the budget is presented in November 2022 as said by the Finance Minister.

    The formal negotiations for a Fund-supported programme have begun, with the IMF team currently meeting government officials for a period of ten days.

    Talks have begun on a comprehensive debt sustainability analysis with the IMF for a US$3 billion support programme.

    “If we can get the whole program together, it will be possible. Normally, it takes an average of about six months to get these things sorthe ted out. So if government gets serious and is able to get the public consultations, it will be able to get it done before the November budget he [Finance Minister] is talking about”, he said.

    Minority spokesperson on Finance, Cassiel Ato Forson, has however cast doubts on the government’s intent to secure a deal with the IMF before the 2023 budget is prepared.

    “I doubt in the next six weeks we are going to have a programme. That will be a magic of a lifetime,” he said on Eyewitness News.

    In his view, any deal before the 2023 budget will not be in Ghana’s interests.

    The government says it is committed to ensuring that a comprehensive package is negotiated with the International Monetary Fund with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection.

  • IMF agreement before the 2023 budget would be detrimental to Ghana, says Ato Forson

    The minority party’s spokesperson on finance, Cassiel Ato Forson, has questioned the government’s motivation to reach an agreement with the IMF prior to the preparation of the 2023 budget.

    “I doubt in the next six weeks we are going to have a programme. That will be a magic of a lifetime,” he said on Eyewitness News.

    In his view, any deal before the 2023 budget will not be in Ghana’s interest.

    “It will mean we are just going to be yes men and accept everything they say,” said Mr. Forson.

    The Director of Strategy and Business Operations at Dalex Finance, Joe Jackson, however, said he was willing to give the Finance Minister some benefit of the doubt.

    He added that the targets are aggressive, but both parties are operating with an awareness of the urgency of the situation.

    “Unless somebody shows me any reason that the team is not going to work day and night to achieve that target, I will be cautiously optimistic,” Mr. Jackson said.

    An IMF team is in Ghana until October 7 to continue discussions with the government on policies and reforms that could be supported by a lending arrangement.

    The Ministry of Finance and the Bank of Ghana have commenced a comprehensive debt sustainability analysis with the IMF for a $3 billion support programme.

    The meeting with the IMF comes amid concerns that Ghana is about to start talks with domestic bondholders on a restructuring of its local-currency debt.

  • We’ll expedite the IMF agreement so it can be included in the 2023 budget – Ofori-Atta

    In order to ensure that major elements of the programme are included in the 2023 budget statement, finance minister Ken Ofori-Atta said the government will expedite negotiations with the International Monetary Fund (IMF).

    The Finance Minister at a press briefing on Wednesday said negotiations have been smooth so far.

    “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,” he added.

    He said the government is committed to ensuring that a comprehensive package is negotiated with the International Monetary Fund with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection.”

    “In addition, the IMF and Government Team are working to update the medium-term macro-fiscal framework to inform IMF programme design.”

    The Finance Minister said no agreement has been reached with the fund on the parameters of debt operations, as the government is still in the process of completing the debt sustainability analysis.

    Mr. Ofori-Atta stressed that everything will be done, to protect the financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both the domestic and external investors.

    He also indicated that the Development Bank Ghana (DBG), is supporting the private sector to invest in areas that will stabilize the economy over the medium to long-term, with positive knock-on effects on job creation and economic growth.

    “I am extremely confident about where we will land on this journey. We have survived a 142 percent inflation, yellow-corn hysteria, mass exodus from our country, and more recently a successful exit from the 2015 Extended Credit Facility. So let us go for the spirit of courage for the LORD is with this Nation. Let us not fear, for He who is with us is greater than all.”

  • IMF backs Tunisia’s $4bn loan bid amid protests

    The International Monetary Fund (IMF) has expressed support for a wide-ranging but controversial economic reform programme being implemented by the government in Tunisia.

    The country is facing a severe economic crisis and is asking for a $4bn (£3.2bn) loan.

    Jihad Azour, the IMF’s Middle East director – after meeting President Kais Saied in Tunis on Wednesday – said he liked the reform plan and that the IMF was ready to discuss a loan.

    The plan includes freezing wages, stopping recruitment in the public sector and cutting energy and food subsidies.

    But there have been big protests and Tunisia’s powerful trade union movement has called nationwide strikes.

    The president has already suspended parliament and sacked his entire cabinet.

    He says he needs even more powers to better steer the country – his opponents say that amounts to a coup against democracy.

    Source: BBC