The discussion, which was held in conjunction with the IMF/World Bank 2022 annual meeting, focused on finding solutions to the world economy’s high food and energy costs, currency instability, and inflationary pressures.
The IMF/World Bank 2022 annual conference will serve as a forum to address important areas where the international community and global financial organizations like the IMF and World Bank Group should increase their support for developing nations.
This forum comes against the backdrop of a confluence of external shocks – in particular, the COVID-19 pandemic, the continuing consequences of the Russia-Ukraine war and deepening concern about the imminent impact of climate change.
Mr. Ofori-Atta told the G-24 Ministers and Governors meeting that, ”there is the need to put a spotlight on the economic consequences of climate change, particularly as it relates to developing countries who are the least contributors to climate change.”
Ghana’s Finance Minister, Ken Ofori-Atta met with UK Exchequer, Kwasi Kwarteng at the G-7 finance ministers and African finance ministers meeting in Washington DC, US ahead of Mr. Kwarteng’s removal from Office as Cabinent Minister.
The police in the Ashanti Region on Thursday, October 13 arrested two armed robbers after a specialised intelligence operation.
One other robber attempted to fire at the police but he was overpowered by returned fire, leaving him dead upon arrival at the hospital.
According to a statement issued by the Director of Public Affairs at the Ghana Police Service, Grace Ansah-Akrofi, the deceased, whose name was given as Issaka Muniru, was wanted after jumping bail at the court.
He had led a gang to rob a pastor of his two gold watches and mobile phones on May 26, 2021.
“The deceased was granted bail by the court but he jumped the bail and a bench warrant was therefore issued for his arrest,” the police statement said.
“His accomplices are still attending trial at the court.”
In another robbery instance, he was arrested among four “but he managed to escape”.
The three suspects have since been remanded into prison custody.
The police commended the Ashanti Regional Police Command, especially personnel of the Regional Intelligence and Operations teams, for leading the operation.
“We would like to assure the public that we will continue to carry out our constitutional mandate of protecting life and property and maintaining law and order even at the peril of our lives.”
Finance Minister, Mr Ken Ofori-Atta, will on Sunday, chair the G20 Ministers of Finance annual dialogue in Washington DC.
The meeting, aimed at tackling climate change issues affecting vulnerable economies, is part of the ongoing IMF-World Bank annual meetings.
It will be attended by Finance Ministers from Africa, Asia, the Caribbean, Latin America, the Middle East, and the Pacific.
The dialogue comes on the background of the Climate Vulnerable Economies Loss report, which noted that V20 economies lost about $525 billion in two decades.
Therefore, the V20 Finance Ministers’ dialogue will discuss debt repayments to finance climate action and climate prosperity plans.
This is to support ongoing initiatives between G7 and G20 countries to tackle global climate finance, loss and damage issues.
The dialogue will also tackle issues of V20 as an official group within the IMF and World Bank as well as IMF’s newly created resilience and sustainability trust.
In a press statement on the chairmanship of the dialogue, Mr Ofori-Atta, said: “Ghana welcomes the challenge of leading the world’s biggest grouping of climate-vulnerable economies to find ways to protect economic growth amidst growing risks posed by climate change.”
“We aim to keep our economies thriving, provide jobs for our people and protect our industries, while advocating for solutions to the climate crisis.”
Formed in 2015, the V20 Group of Finance Ministers is a dedicated cooperation of economies systematically vulnerable to climate change.
V20 Group members are also states of the Climate Vulnerable Forum (CVF). V20 Group membership stands at 58 economies, representing some 1.5 billion people, including Afghanistan, Bangladesh, Barbados, Benin, Bhutan, Burkina Faso, Cambodia, Chad, Colombia, Comoros, Costa Rica, Côte d’ivore, Democratic Republic of the Congo, Dominican Republic, Eswatini, Ethiopia, Fil.
Others are: The Gambia, Ghana, Grenada, Guatemala Guinea, Guyana, Hat, Honduras, Kenya, Kiribati, Kyrgyzstan, Lebanon, Liberia, Madagascar, Malawi, Maldives, and Marshall Islands.
The rest are: Mongolia, Morocco, Nepal, Nicaragua, Niger, Palau Palestine, Papua New Guinea, Philippines, Rwanda, Saint Lucia, Samoa, Senegal, South Sudan, Sri Lanka Sudan, Tanzania, Timor-Leste, Tunisia, Tuvalu, Uganda, Vanuatu Viet Nam and Yemen as a UN non-member observer State.
A finance expert and an associate professor with Andrews University in Michigan, USA, Prof Williams Kwasi Peprah has said the Finance Minister, Ken Ofori-Atta must ask the Bretton Woods institutions for debt relief on existing loans.
He said the move will automatically help to manage and reduce the country’s ballooning national debt.
Speaking with Benjamin Offei-Addo on the Asaase Breakfast Show on Friday (14 October) Prof Peprah said, “If I were the Finance Minister [Ken Ofori-Atta] even putting my plans [together], my number one strategy that will be on that plan is asking IMF and World Bank to give me debt relief on the loans that they have given to me and then I’ll now talk about the [new] US$3 billion loan.
“Because if IMF gives us the debt relief, it frees us space; it means that we are not going to pay and straight away our debt will reduce because we’ll write it off our books,” he said.
The government began discussions with the Washington-based multilateral lender last July, reversing a pledge by President Nana Akufo-Addo’s administration not to seek a financial programme from the IMF.
Ghana has been battling to stabilise a debt pile that increased to 78.3% of gross domestic product at the end of June from 62.5% five years ago.
However, the International Monetary Fund (IMF) has cooled speculation that Ghana is poised to start talks on restructuring its debt under plans to secure a US$3 billion loan from the Fund.
According to the Bretton Woods institution, the restructuring of Ghana’s debt will depend on the outcome of an IMF debt sustainability analysis (DSA) report.
The IMF director of communications, Gerry Rice, who disclosed this at a news conference in Washington, DC, said the DSA report will show if there is a need for debt restructuring in the first place and, if necessary, how it should be carried out, as well as which areas will be affected.
Ghana’s Finance Minister, Ken Ofori-Atta, is in the United States of America, USA, attending the Group of Seven (G7) meeting with Finance Ministers from some African countries which is part of the IMF and World Bank Annual meetings.
Ofori-Atta described the meeting as “quite historic because for the first time, the G7 has called African Finance Ministers to deliberate on the crisis that they see.
“…these are exogenous factors that have really (impacted), even their own economies (and) put it under serious stress and are, therefore, looking for ways in which they can add to the capital needs to make sure that things do not deteriorate. So countries such as Ghana, Senegal, Tunisia, and Morocco were there,” he said as quoted by 3news.
This is not the only historic moment of the ongoing meeting in Washington DC as Ken Ofori-Atta also met for the first time, Kwasi Kwarteng, the British-born Ghanaian who is the current the Chancellor of the Exchequer, that is the UK’s Finance Minister.
In some of the photos circulating on social media, Ofori-Atta is seen sitting next to Kwarteng and having a tête-à-tête.
Kwasi Kwarteng’s appointment made him the first Black to ascend to such a position regarded as only second to the Prime Minister’s office in UK political circles.
Before his new role as the Chancellor of the Exchequer, the Conservative MP for Spelthorne was the Business secretary under Boris Johnson’s government.
As the Chancellor of the Exchequer, the British of Ghanaian descent is responsible for raising revenue through taxation or borrowing and for controlling public spending. He has overall responsibility for the work of the treasury.
The G7 is made of an informal grouping of seven of the world’s advanced economies; namely: Canada, France, Germany, Italy, Japan, United Kingdom, United States of America and European Union.
This group invited finance ministers from South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia and Morocco for the all-important meeting.
The meeting with the African Financial Ministers brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The International Monetary Fund (IMF) has projected that Ghana will end the year with a Debt-to-GDP of 90.7 per cent.
This according to myjoyonline.com was captured in its Fiscal Outlook Report released on the sidelines of the on-going IMF/World Bank Annual meetings in Washington DC, USA.
The report, also forecasts that the Debt–to-GDP could reduce to 87.8 per cent in 2023.
According to the IMF, revenue expressed as a ratio of GDP could also hit 14.1 per cent at the end of 2022.
It will subsequently increase to 14.7 per cent in 2023 and 15.4 per cent in 2024”, the report said, classifying Ghana as a Low Income Developing Country.
Ghana is currently undergoing Debt Sustainability Analysis with the IMF and the World Bank. This is expected to help the country ascertain the true levels of the debt stock.
The country was recently classified as a High Risk of Debt Distress by the World Bank and IMF in its Debt Sustainability Analysis.
The two Bretton Wood institutions are currently conducting a new Sustainability Debt Analysis on Ghana – a situation that could influence the outcome of an economic programme with Ghana by the end of 2022.
The Finance Minister, Ken Ofori-Atta, has already indicated that government is working hard to reach a programme with the IMF by November 2022.
The government is hoping to secure a programme with the IMF before the 2023 Budget presentation in parliament within the same period.
In October 2022, data from the Bank of Ghana pegged the country’s debt stock at ₵402 billion as of July 2022, representing 68 per cent of GDP.
Some financial observers have stated that with an expected expansion of the economy and an IMF programme, the country’s debt stock may not reach “unsustainable levels”.
The World Bank in its Africa Pulse Report released in October 2022 projected that Ghana will end 2022 with a Debt –to –GDP ratio of 104 per cent.
The Group of Seven (G7) countries invited finance ministers from several African countries to a summit in Washington, DC, a move that the country’s finance minister, Ken Ofori-Atta, called “very significant.”
The G7 is an informal alliance of the seven most developed economies in the world, namely: Canada, France, Germany, Italy, Japan, the United Kingdom, the United States of America, and the European Union.
For the crucial meeting, this group summoned the finance ministers of South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia, and Morocco.
It was reported by Accra-based 3news that the G7 instructed the World Bank to provide financial support to Ghana and other African countries who were at the meeting.
This financial support, according to the report, is to enable the African countries to deal with the impact of the economic crisis caused by force majeures.
“It was actually quite a historic meeting because for the first time the G7 has called African Finance Ministers to deliberate on the crisis that they see.
“…these are exogenous factors that have really (affected), even their own economies (and) put it under serious stress and are, therefore, looking for ways in which they can add to the capital needs to make sure that things do not deteriorate. So countries such as Ghana, Senegal, Tunisia, and Morocco were there,” Ken Ofori-Atta said as quoted by 3news.
He added “The empathy is clear, the need to [introduce] something new and therefore, their interest in encouraging the World Bank to find more resources, tapping into the private sector so that they will stabilize where things are going.
“They have reduced growth rate to 2.7 percent expecting a grim and difficult period, they don’t want to make sure that things deteriorate from liquidly to insolvency to chaos.”
The meeting brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academia to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The minister emphasized the need for a more proactive and inclusive approach when speaking at the Group of Seven (G7) conference in Washington, DC on October 12, 2022, which was a part of the IMF and World Bank Annual Meetings.
Ofori-Atta asked for more clarity about the G20 common framework and the necessity of more engagement between G7 and African Finance Ministers to develop creative and cooperative solutions in respect to the public debt levels of African nations.
“With the intent of creating an enabling environment for private capital seeking rewarding growth investments, Ghana signed up to the G20 Compact with Africa (CWA) country in June 2017.
“Since then, we have gradually tackled the structural challenges which have inhibited our drive towards becoming Africa’s investment hub through the implementation of targeted interventions,” Ken Ofori-Atta stated at the meeting.
The Ministers were joined by a select group of African countries including South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia and Morocco to discuss current challenges being faced across advanced and frontier economies.
Ghana’s finance minister, Ken Ofori-Atta, is in the USA for the annual IMF and World Bank meetings and the Group of Seven (G7) meeting with finance ministers from other African nations.
The conference, according to Ofori-Atta, was “very historic because the G7 convened African Finance Ministers for the first time to discuss the situation that they see.”
“…these are exogenous factors that have really (impacted), even their own economies (and) put it under serious stress and are, therefore, looking for ways in which they can add to the capital needs to make sure that things do not deteriorate. So countries such as Ghana, Senegal, Tunisia, and Morocco were there,” he said as quoted by 3news.
This is not the only historic moment of the ongoing meeting in Washington DC as Ken Ofori-Atta also met for the first time, Kwasi Kwarteng, the British-born Ghanaian who is the current the Chancellor of the Exchequer, that is the UK’s Finance Minister.
In some of the photos circulating on social media, Ofori-Atta is seen sitting next to Kwarteng and having a tête-à-tête.
Kwasi Kwarteng’s appointment made him the first Black to ascend to such a position regarded as only second to the Prime Minister’s office in UK political circles.
As the Chancellor of the Exchequer, the British of Ghanaian descent is responsible for raising revenue through taxation or borrowing and for controlling public spending. He has overall responsibility for the work of the treasury.
The G7 is made of an informal grouping of seven of the world’s advanced economies; namely: Canada, France, Germany, Italy, Japan, United Kingdom, United States of America and European Union.
This group invited finance ministers from South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia and Morocco for the all-important meeting.
The meeting with the African Financial Ministers brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The government has come under fire from Dr. John Kwabena Kwakye, senior economist and director of research at the Institute of Economic Affairs (IEA), for traveling to Washington to meet with the World Bank and International Monetary Fund (IMF) and represent the Group of Seven (G7) African Finance Ministers.
The government delegation from the Finance Ministry was led by Ken Ofori-Atta, who made a suggestion that they would remain beyond the conference to complete Ghana’s negotiations with the Fund.
According to him, the team extending their time will enable them to make some fair decisions.
“We still are working through and as you know we are staying beyond the Fund, the World Bank meetings through, maybe, the 20th, so we will continue with the Mission and the work. We pray that that may give us enough time to be able to come to some fair decisions on the outlook.
“I can tell you that the Fund staff is very motivated, which is good and we are 24/7, so the combination of their own enthusiasm, our clarity on the work that has been done to fulfil the President’s promise. If you look at the turnout of discussion for this annual meeting clearly, the world is recognizing that something different has to be done,” Ken Ofori-Atta said as quoted by Accra-based 3news.
But Dr. Kwakye is of the view that staying longer in Washington DC would not solve the current economic problems the country is facing.
“Our policymakers need to be reminded that the solution to our economic crisis lies here at home and not in Washington. The more they look up to Washington, the longer the uncertainty and panic in the markets will prevail,” Dr. John K. Kwakye tweeted.
The G7 is made of an informal grouping of seven of the world’s advanced economies; namely: Canada, France, Germany, Italy, Japan, United Kingdom, United States of America and European Union.
This group invited finance ministers from South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia and Morocco for the all-important meeting.
The meeting with the African Financial Ministers brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
According to Ken Ofori-Atta, the Finance Minister, Ghana’s delegation to the Group of Seven (G7) conference with African finance ministers in the US would remain after the summit to wrap up negotiations with the International Monetary Fund, IMF, before returning to Ghana.
He believes that by giving the group more time, they would be able to reach some reasonable judgments.
We will continue with the Mission and the Work since, as you are aware, we are remaining past the Fund and World Bank meetings through, possibly, the 20th. We hope it will allow us enough time to make some fair decisions about the future.
“I can tell you that the Fund staff is very motivated, which is good and we are 24/7, so the combination of their own enthusiasm and our clarity on the work that has been done to fulfil the President’s promise. If you look at the turnout of discussions for this annual meeting clearly, the world is recognizing that something different has to be done,” Ken Ofori-Atta said as quoted by Accra-based 3news.
Meanwhile, it’s been reported that the G7 during the meeting asked the World Bank to provide financial support to Ghana and other African countries to enable them to deal with the impact of the economic crisis caused by force majeure.
The G7 is made of an informal grouping of seven of the world’s advanced economies; namely: Canada, France, Germany, Italy, Japan, United Kingdom, United States of America and European Union.
This group invited finance ministers from South Africa, Senegal, Togo, Zambia, Ghana, Guinea, Rwanda, Chad, Tunisia and Morocco for the all-important meeting.
The meeting with the African Financial Ministers brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The administration has come under fire for attending the Group of Seven (G7) African Finance Ministers meeting with the World Bank/International Monetary Fund, IMF, in Washington, according to Dr. John Kwabena Kwakye, Senior Economist and Director of Research at the Institute of Economic Affairs (IEA).
The government delegation from the Finance Ministry was led by Ken Ofori-Atta, who made a suggestion that they would remain beyond the conference to complete Ghana’s negotiations with the Fund.
According to him, the team extending their time will enable them to make some fair decisions.
“We still are working through and as you know we are staying beyond the Fund, the World Bank meetings through, maybe, the 20th, so we will continue with the Mission and the work. We pray that that may give us enough time to be able to come to some fair decisions on the outlook.
“I can tell you that the Fund staff is very motivated, which is good and we are 24/7, so the combination of their own enthusiasm, our clarity on the work that has been done to fulfil the President’s promise. If you look at the turnout of discussion for this annual meeting clearly, the world is recognizing that something different has to be done,” Ken Ofori-Atta said as quoted by Accra-based 3news.
He said, the long stay in the States will only make our economic situation uncertain and panic in the markets will prevail.
“Our policymakers need to be reminded that the solution to our economic crisis lies here at home and not in Washington. The more they look up to Washington, the longer the uncertainty and panic in the markets will prevail,” Dr. John K. Kwakye tweeted.
The G7 is made of an informal grouping of seven of the world’s advanced economies; namely: Canada, France, Germany, Italy, Japan, United Kingdom, United States of America and European Union.
The meeting with the African Financial Ministers brings together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The Ghana Ports and Harbours Authority’s Director General, Michael Luguje, has reaffirmed the Authority’s support for the government’s plan to stop any income leakage at the country’s ports.
He disclosed that any worries over the under-declaration of bulk cargo amounts received at the port will be eliminated by the cutting-edge conveyor system that is being constructed at the Dry Bulk Terminal.
“This is because the contemporary Takoradi conveyor system automatically determines the volumes it is transporting as it loads.
The weighbridge project will benefit Tema with regard to all of our incoming and outgoing dry bulk shipments.
Mr. Luguje said, “We are prepared to assist you in this direction.
The GPHA Boss also said his outfit will provide the government with its detailed input for the operationalization of the “no duty, no exit” policy initiative, intended to block revenue leakages.
“We have in our own discussions acknowledged that the ports are already, no duty no exit enclaves but maybe the methodology is what is now going to be new. Otherwise, that has been the practice in Ghana’s ports. Having participated in the committee that drafted the implementation modalities, we are assessing them and in the course of next week, we will be presenting some information to you to help in the way forward.”
These assurances were made when the Finance Minister, Ken Ofori-Atta led a delegation to visit the Port Authority to strengthen collaboration towards finding lasting solutions to challenges associated with revenue collection at the ports.
Present at the meeting was the Commissioner General of the Ghana Revenue Authority, Ammishaddai Owusu-Amoah, and Acting Commissioner of Customs, Seidu Iddrissu Iddisah.
The Finance Minister called for tightened collaborations between the Port Authority and Revenue Authority towards measures that will seal all forms of revenue leakages that could emanate from the port area.
He said that Akufo-Addo had given the economy to Databank, a private finance company co-founded by the Finance Minister Ken Ofori-Atta, during a panel debate on TV3 last week.
He named four people associated with the group in his explanation of the overall impact Databank officials had on the economy, saying how their deliberate placement in various economic sectors showed a “capture” of the industry.
He cited Ofori Atta himself as Finance Minister, his Databank co-founder Keli Gadzekpo, a one-time board chairman of the Bank of Ghana now board chair of the Electricity Company of Ghana; Rev. Daniel Obgarmey Tetteh, the Director General of the Securities and Exchange Commission, SEC and Yoofi Grant of the Ghana Investment Promotions Center, GIPC – all of whom are linked to Databank.
“They are meddling with the finances of this country… so if you take this sector and just give it out to Databank, President, something is wrong. If no one is telling you, you should know, you should see it.
“If these men pushed us into a ditch, they are incapable of pulling us out because their legs are wobbly,” he stressed.
In his view, the fact that the economy has been suffering distress and for the President to keep the Finance Minister who plunged the country into that mess, shows that he is insensitive to the plight of the citizenry.
With respect to the economic downturn, he submitted: “The major problem we have in this country is President Akufo-Addo, who thinks that the mindset that took us into this problem is capable of lifting us out of the problem.”
Analysts and politicians alike have been calling for government to take pragmatic steps to deal with the current economic downturn.
Rising cost of living, galloping inflation and a rapidly depreciating Ghana Cedi are some of the main pointers to the economic crisis that Ghanaians are putting up with.
The government is in talks with the International Monetary Fund, IMF, for a reported US$3 billion rescue facility to help stabilize the economy and reset it on the path of growth.
Government has partly blamed the Russia-Ukraine war and the impact of the COVID-19 pandemic for the headwinds, insisting that all was being done to stem the tide.
The growth rate for Ghana for the fiscal year 2022 has been reduced by the International Monetary Fund (IMF) from 5.2 percent to 3.6 percent.
In a recent economic forecast study, the IMF voiced concern that nations like Ghana might be affected by the continued economic problems in industrialized nations, according to a Joy Business story.
However, it warned that if action is not taken to reverse the general downturn in the global economy, it is likely that the economies of industrialized nations will experience contraction.
“Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades”, the report said.
“The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic,” it added.
Despite the forecast, the IMF has cautioned that decisions by central banks in developed countries in hopes of checking inflationary pressures will rather impact economies such as Ghana’s along with fallouts from the Russia-Ukraine tensions.
Meanwhile, the latest forecast by the IMF for Ghana is slightly lower than the 3.7 percent growth rate announced by the Finance Minister, Ken Ofori-Atta.
He said this when he delivered the Mid-Year Budget Review before Parliament on July 25, 2022.
For the 2023 fiscal year, the IMF in its latest outlook said economic growth will slow down to 2.8 percent and is expected to peak strongly in 2027 to reach 6.8 percent.
A 5-member Consultative Committee has been set up by the government to lead extensive stakeholder engagement as the country negotiates with the International Monetary Fund (IMF).
Before a deal with the IMF for an economic programme is finalised, the committee, which is made up of eminent members of the financial services industry, will review opinions from financial sector players on how to address issues in the financial sector.
They will also provide guidance and, among other things, lead conversations with the financial services industry and other stakeholders in order to provide industry-wide input and relay industry concerns about debt management strategy to the Ministry of Finance and the Bank of Ghana.
The Committee, according to the Finance Ministry, is chaired by Albert Essien, with Simon Dornoo as vice chair.
Mr Essien is the Board Chairman of Ghana Amalgamated Trust. He holds a Bachelor of Arts degree in Economics from the University of Ghana, Legon, and is a fellow of the Chartered Institute of Bankers, Ghana.
The committee also includes Peter Enti, Mabel Nyarkoa Porbley, and Alex Asiedu.
According to the Ministry of Finance, the 5-member team will “will immediately get to work to engage key stakeholders in the financial services sector, in addition to ongoing engagements with Civil Society Organizations (CSOs), social partners (labour unions, employers, and FBOs), academia, industry professionals, and the leadership of Parliament.” The government, as part of efforts to restructure the country’s economic debt, is still in talks with the IMF on the country’s medium- term macro-fiscal framework.
The IMF team, which has reaffirmed its commitment to assisting Ghana in its current economic difficulties, has conducted a debt sustainability analysis (DSA) to help inform the economic programmes required to put the country’s debt levels on a sustainable path in the medium term.
So far, the IMF programme is hinged on seven (7) pillars, namely: Debt Sustainability, Fiscal Consolidation, Strengthening Monetary and Exchange Rate Policies, Building Strong Financial Institutions, Macro-Critical Structural Reforms, Maintaining Peace and Security, and Economic Growth and Transformation.
Finance Minister, Ken Ofori-Atta, has called for increased focus on the economic impact of climate change to developing nations.
He said a spotlight on the canker was needed to get the world and developed countries in particularly to fully appreciate the adverse effects of climate change to humanity and economies in particular.
Mr OforiAtta also met with the Director for the Africa Department of the IMF, Abebe Aemro Selassie, to advance discussions on ongoing IMF-assisted programme negotiations with the fund.
Climate change
Addressing the G-24 Ministers and Governors Meetings as part of ongoing Wold Bank/International Monetary Fund (IMF) Meetings in Washington D.C., Mr Ofori-Atta said over the past two decades, climate change had wiped off more than $525 billion from developing countries.
This, he said made it imperative for urgent actions to tackle the menace.
The Finance Minister was addressing 108th Meeting of Ministers and Governors of the Group of 24 on the theme: ‘Securing a Sustained Post-Pandemic Recovery.’
Delegation
The Finance Minister is leading a delegation from Ghana to the Annual Meetings of the World Bank/IMF in Washington, D.C. of the United States of America.
The delegation comprises the Minister of State at the Ministry of Finance, Charle Adu Boahen, the Minister of Information, Kojo Oppong Nkrumah, the Bank of Ghana Governor (BoG), Dr Ernest Addison, and the First Deputy Governor, Dr Maxwell Opoku-Afari.
The delegation is also expected to advance negotiations with the IMF on a fund-assisted programme that addresses Ghana’s macroeconomic and structural challenges.
Addressing the G-24 Meetings said, “there is the need to put a spotlight on the economic consequences of climate change, particularly as it relates to developing countries who are the least contributors to climate change. “Climate change has wiped out a fifth of the wealth of climate-vulnerable countries over the last two decades – meaning that vulnerable countries have lost approximately $525 billion because of anthropogenic global warming,” he said.
He said it was saddening to note that these losses, which were attributable to global warming as a result of human activity as opposed to the natural climate cycle.
Mr Ofori-Atta described the losses as horrific effects on lives and livelihoods.
Consequently, he said climate-vulnerable countries required an economic cooperation through climate prosperity plans.
He said the plan must facilitate the flow of climate financing into “our economies with a focus on building climate resilience in our economies, expanding on our adaptive capacity as we increase our mitigation efforts and increasing investments in disaster risk reduction and insurance.”
Additional benefits
An annual event, this year’s World Bank/IMF Annual Meetings provides the world the platform to discuss critical areas where the international community and international financial institutions such as the IMF and the World Bank Group could scale up their support for emerging economies.
This forum comes against the backdrop of a confluence of adverse shocks heightened by debt vulnerabilities, persistent inflation, and deep concern about the impending impact of climate change.
As part of the discussions, it was agreed that Ghana’s negotiated program must reposition the country towards a resilient macroeconomic environment, whilst ensuring that the most vulnerable segments of the population are protected from the impact of any potential fiscal adjustments.
The second round of formal negotiations will continue after the Annual Meetings, between the Government of Ghana team, led by the Honourable Minister for Finance, Ofori-Atta; and the IMF team, led by the IMF Mission Chief, Stéphane Roudet.
The negotiations will prioritize the implementation of policies that create the conditions for a stable macroeconomic environment, sustainable growth and debt sustainability.
The Ghana cedi’s problems persisted, with the retail exchange rate standing at 11.30 to the dollar.
This comes after it crossed the 11 threshold on October 8, 2022, a Saturday.
According to Joy Business’s inspections of a few forex offices in Accra, the nation’s capital, the majority of these offices sell dollars for between 11.10 and 11.35.
The euro and pound, which are both trading at very high levels against the cedi, may be argued to be comparable.
The exchange rates for the cedi against the pound and the euro are 12.30 and 10.83 respectively.
The situation, if not given urgent attention by managers of the economy may be dire for the economy as most businesses have seen a significant increase in their cost of doing business, whilst households have also witnessed substantial rise in their cost of living.
Some of the forex bureaus operators, who spoke to Joy Business on condition of anonymity emphasised the recent action by Bank of Ghana against them as ineffective since the problem is more of an economic issue.
However, some analysts are cautiously optimistic that the $1.13 billion cocoa syndicated loan which the first tranche is expected to come in by the end of this month will help improve supply and slow down the rate of depreciation of the currency.
But that is a temporary measure which will be short-lived if medium to long term measures are not implemented.
Finance Minister, Ken Ofori-Atta, yesterday October 12, 2022 met with the Director for the Africa Department of the IMF, Abebe Aemro Selassie at the ongoing Annual IMF/World Bank Spring Meetings to push for a quick completion of negotiations with the International Monetary Fund for an economic programme.
The IMF move is seen by many as the only measure that will restore Ghana’s macroeconomic and structural challenges.
Though it will come with painful conditionalities, many market watchers believe it will boost the country’s credibility and improve its credit rating, following downgrades by Moody’s and Fitch.
Dollar breaks ¢11 mark; forex bureaus sell a dollar for ¢11.2
The dollar broke the ¢11 mark over the weekend, following days of consecutive fall.
Also a report by Databank Research disclosed that the cedi was likely to endure depreciation pressures in the near term as the foreign exchange market still awaits news on the Debt Sustainability Analysis [DSA] conducted by the IMF
“The local unit [cedi] is likely to endure depreciation pressures in the near term as the market still awaits news on the DSA conducted by the IMF. The syndicated loan of $1.13 billion signed last week is expected to bolster FX supply and provide some reprieve to the cedi”, Databank Research said.
As portfolio outflows drained reserves, Ghana’s gross international reserves fell to 2.9 months of import cover. This is despite impressive earnings from exports of crude oil and gold.
Kow Essuman, lawyer for President Nana Addo Dankwa Akufo-Addo has expressed belief in the ability of Finance Minister, Ken Ofori-Atta, to steer Ghana out of the current economic downturn.
Essuman’s belief is anchored in the fact that the Minister has steered Ghana out of a crisis and that “he will do it again.”
“I am confident that Finance Minister, Ken Ofori-Atta, will get a good deal for Ghana and steer us out of these times very soon. He has done it before, and he will do it again,” tweeted on October 11, 2022.
His views accompanied a GhanaWeb curated publication from the Business and Financial Times portal, in which Ofori-Atta expressed satisfaction with progress made so far with regards to negotiation with the International Monetary Fund for an economic programme.
“This has been a very productive mission and I thank the IMF Team and all stakeholders for their commitment over what has been a marathon fortnight. The Government of Ghana is deeply encouraged by the progress made so far,” he said.
“We look forward to continuing our engagement and remain committed to working tirelessly to create a stable and resilient macroeconomic environment, ensure debt sustainability, and maintain social cohesion.
“Ghana is at a pivotal moment in her history and we are grateful for the IMF’s support, and indeed the support of all Ghanaians, as we work together to bolster Ghana’s build back effort,” he is quoted to have said.
His views come after the IMF mission team led by Stéphane Roudet completed its work in assessing the state of the Ghanaian economy.
I am confident that Finance Minister, Ken Ofori-Atta, will get a good deal for Ghana and steer us out of these times very soon. He has done it before, and he will do it again.
Ken Ofori-Atta, the finance minister, has urged for additional funding and attention to the financial effects of climate change on developing nations.
He claims that a strict strategy is necessary to ensure that developed countries fully understand the negative implications of climate change on mankind in general and economies in particular.
Speaking to attendees at the G-24 Ministers and Governors Meetings of the ongoing World Bank/International Monetary Fund (IMF) Meetings in Washington, D.C., Ofori-Atta noted that over the past two decades, climate change had cost developing countries more than $525 billion.
“There is the need to put a spotlight on the economic consequences of climate change, particularly as relates to developing countries who are the least contributors to climate change,” Ken Ofori-Atta noted.
“Climate change has wiped out a fifth of the wealth of climate-vulnerable countries over the last two decades – meaning that vulnerable countries have lost approximately US$525 billion because of anthropogenic global warming,” he added.
Ghana’s Finance Minister, however, described the losses as horrific effects on lives and livelihoods and called for economic cooperation through climate prosperity plans for climate-vulnerable countries.
Touching further on this plan, he suggested that it must facilitate the flow of climate financing into “our economies with a focus on building climate resilience in our economies, expanding on our adaptive capacity as we increase our mitigation efforts and increasing investments in disaster risk reduction and insurance.”
The 108th meeting of Ministers and Governors of the Group of 24 was held on the theme: ‘Securing a Sustained Post-Pandemic Recovery.’
Meanwhile, Ken Ofori-Atta along with government officials met with the Director for the Africa Department of the IMF, Abebe Aemro Selassie, to advance negotiations with the Fund for economic support porgramme aimed at addressing Ghana’s macroeconomic and structural challenges.
The second round of formal negotiations will however continue after the World Bank/IMF Annual Meetings, between the Government of Ghana team, led by Minister for Finance and the IMF team, led by the IMF Mission Chief, Stéphane Roudet.
The negotiations will focus on the implementation of policies that create conditions for a stable macroeconomic environment, sustainable growth and debt sustainability.
Kow Essuman, lawyer for President Nana Addo Dankwa Akufo-Addo has expressed belief in the ability of Finance Minister, Ken Ofori-Atta, to steer Ghana out of the current economic downturn.
Essuman’s belief is anchored in the fact that the Minister has steered Ghana out of a crisis and that “he will do it again.”
“I am confident that Finance Minister, Ken Ofori-Atta, will get a good deal for Ghana and steer us out of these times very soon. He has done it before, and he will do it again,” tweeted on October 11, 2022.
His views accompanied a GhanaWeb curated publication from the Business and Financial Times portal, in which Ofori-Atta expressed satisfaction with progress made so far with regards to negotiation with the International Monetary Fund for an economic programme.
“This has been a very productive mission and I thank the IMF Team and all stakeholders for their commitment over what has been a marathon fortnight. The Government of Ghana is deeply encouraged by the progress made so far,” he said.
“We look forward to continuing our engagement and remain committed to working tirelessly to create a stable and resilient macroeconomic environment, ensure debt sustainability, and maintain social cohesion.
“Ghana is at a pivotal moment in her history and we are grateful for the IMF’s support, and indeed the support of all Ghanaians, as we work together to bolster Ghana’s build back effort,” he is quoted to have said.
His views come after the IMF mission team led by Stéphane Roudet completed its work in assessing the state of the Ghanaian economy.
A 5-Member Consultative Committee, led by savvy banker Albert Essien, has been established by the government to coordinate stakeholder engagements in the financial industry in order to reach an agreement with the International Monetary Fund (IMF) about Ghana’s debt restructuring.
Before agreeing on a financial sector solution with the IMF for an economic program, the group will consider opinions from financial industry participants.
The organization is distinct from the credit committee, Joy Business has learned.
The other members of the committee are Alex Asiedu, Mabel Nyarkoa Porbley, and Peter Enti.
The committee will be giving counseling and will among other things, lead discussions with the financial services industry and other stakeholders to provide industry-wide inputs and transmit industry concerns on debt management strategy to the Ministry of Finance and the Bank of Ghana.
The expectations and goals are to ensure orderliness and confidence in government’s negotiations with the IMF.
The committee, Joy Business, understands is expected to give more power to the industry players on any decision that government will reach going forward in dealing with Ghana’s debt and the IMF programme.
Why this consultative group?
The Finance Minister, Ken Ofori-Atta at a press briefing on September 26, 2022 announced that the committee will be set up for some broader stakeholder consultative inputs in finalising any deal with the IMF for an economic programme.
Scope of the consultative group?
The Finance Ministry has also disclosed that a similar engagement will be undertaken with Ghana’s external bondholders.
“The stability of the domestic financial ecosystem is critical to a successful IMF-supported economic programme and government will take all necessary steps to protect the sector as we have done in the past,” the ministry said.
“We need the support and trust of all Ghanaians to ensure that a historic arrangement is reached with the IMF. We are confident that with such engagement and collaboration the Ghanaian way, will enable us to recover very quickly and strongly from our macroeconomic challenge”, it said.
Who is Albert Essien?
Mr. Essien is a seasoned financial specialist with 30 years of experience in the banking sector.
He is the former CEO of Ecobank Group. Albert serves on several boards including the Development Finance Institute (Fin Dev), Canada, Old Mutual – South Africa, LMI Holdings as well as Jumo Africa.
He is also the Board Chairman of Ghana Amalgamated Trust. Albert holds a Bachelor of Arts degree in Economics from the University of Ghana, Legon and is a fellow of the Chartered Institute of Bankers, Ghana.
Archbishop Agyin-Asare indicated that the economic challenges in the country would worsen because of the conditionalities that will come with an International Monetary Fund (IMF) bailout the government is seeking and the continuous depreciation of the Ghana Cedi.
The renowned pastor, who made these remarks during a sermon in his church on Sunday, October 9, intimated that this would be a time of test for people of faith.
“If there is a time that you need faith in your life, it is this time. This time that Ghana has gone to the IMF, it is this time. This time that our cedi is dancing, it is this time. At this time that our currency doesn’t mean anything; if you need faith, this is the time.
“Irrespective of your political persuasion, if you needed faith, this is the time. Irrespective of what you think you need faith; this is the time. Because if you are going to survive and go above, you need faith.
“…and listen to me, it is going to take some time before things settle… it is going to take some time, and so you need faith,” he reiterated.
Meanwhile, the IMF has left Ghana after initial engagements for Ghana’s bailout concluded. The negotiations for a $ 3 billion bailout for Ghana are expected to continue in the US. The Minister for Finance, Ken Ofori-Atta,has hinted that the negotiations are likely to be concluded before the presentation of the 2023 budget in November 2022.
Also, the Ghana Cedi has depreciated to a 30-year low and is regarded as one of the worst-performing currencies in the world, currently selling at over GH¢11 for a dollar.
Ken Ofori-Atta, the finance minister, has expressed satisfaction with the development of the negotiations for an economic program with the International Monetary Fund.
He claims that the administration is dedicated to building a macroeconomic climate that is secure and resilient, ensuring debt sustainability, and preserving social cohesion.
This comes after the Stéphane Roudet-led IMF mission team finished evaluating the status of the Ghanaian economy.
“This has been a very productive mission and I thank the IMF Team and all stakeholders for their commitment over what has been a marathon fortnight. The Government of Ghana is deeply encouraged by the progress made so far,” he said.
“We look forward to continuing our engagement and remain committed to working tirelessly to create a stable and resilient macroeconomic environment, ensure debt sustainability, and maintain social cohesion. Ghana is at a pivotal moment in her history and we are grateful for the IMF’s support, and indeed the support of all Ghanaians, as we work together to bolster Ghana’s build back effort”, he explained.
The Finance Minsiter further said the government of Ghana remains steadfast in its resolve to fast-track negotiations with the IMF towards achieving a historic agreement that will help strengthen post-covid economic growth.
Officials from the Fund are now in Ghana for talks; they arrived in Accra on September 26 and are scheduled to depart on October 7 of that year.
Once an agreement is struck, the nation hopes to receive $3 billion from the Bretton Woods institution; the money is anticipated to be available in 2023.
As part of the negotiations, Ken Ofori-Atta said government officials will from this weekend continue engagements in Washington DC, United States with IMF officials.
Speaking with journalists during a working visit to Long Room’ at the Tema Port, Ken Ofori-Atta described initial engagements with IMF officials as fruitful and collaborative.
“We will go to Washington with them and continue for another two weeks of discussions. I think we are moving in the right direction. The Debt Sustainability Analysis still continues”, he disclosed.
“The Debt Sustainability Analysis is a critical component of the decision as to what to do such as structural reforms and debt operations, as well as the financing gap of the country,” he stressed.
Ken Ofori-Atta however applauded the Customs Division of the Ghana Revenue Authority for exceeding its target in September 2022.
“A huge part of the discussions also include revenue. This means that the work of customs is very important to the discussions. I looked at September figures and it looks like we exceeded the target. That’s very encouraging,” he said.
According to a statement made by Dr. Cassiel Ato Forson, ranking member of the finance committee, this is due to what they view to be the widely acknowledged incompetence and egregious mismanagement of the Ghanaian economy.
“The Syndicated loan was signed on 3rd October 2022, for the first time in 30-years. The Syndicated Loan is typically signed before October so that the draw down is timed to the start of the season. However, this government has added late signing of syndicated loans to its plethora of failures.
“Parliament approved up to $1.3 billion syndicated loan. However, COCOBOD could only get $1.13bn. This is purely due to the lack of confidence in the Ghanaian economy resulting from the generally agreed incompetence and gross mismanagement of the
Ghanaian economy.
“With huge and unprecedented debt overhang at COCOBOD, will the syndicated loan go into purchase of cocoa and related operations? Or will LBCs suffer the same faith of borrowing very expensive loans to buy cocoa from farmers, only for COCOBOD
not to pay them, as we have seen since 2017?” the statement said.
The Ghana Cocoa Board (COCOBOD) has signed a USD1.13 billion Receivables-Backed Trade Finance Facility (Syndicated Loan) on Monday October 3.
COCOBOD received $1.13 billion instead of the $1.3 billion as approved by Parliament.
The Chief Executive of COCOBOD, Joseph Boahen Aidoo, said during the signing ceremony that despite the challenges facing the cocoa sector, brought on by the global financial difficulties, the sector has once again shown leadership.
He assured the lenders of the effective and efficient use of the funds.
The Minister for Finance, Ken Ofori-Atta, also said the signing puts the nation’s finances in the right landing zone and gives impetus for optimism in the Ghanaian economy.
Ken Ofori-Atta has been declared a failure in his position as the nation’s finance minister, according to Prince Kofi Amoabeng, the chief executive officer of the collapsed UT Bank.
He claims that the administration has not developed a rescue strategy for addressing the nation’s current problems.
Amoabeng according to 3news reports, intimated that the government must take the necessary steps to control the local factors that are causing the economic challenges the country currently faces.
“You must do what you can locally, for the external factors you can’t do much, what are you doing locally to reduce the effect? We are not doing anything. The government hasn’t come out to say we coming down on certain things,” he is quoted by 3news.com.
Adding on Amoabeng said, “of course if you fail with the planning and management of the Finances of the country you have failed.
“So yes [the Finance Minister] has failed, there are no two ways about it.”
“The president has failed first, so if you ask me, it is the president who has failed, everything starts with leadership, he appoints everyone and so if you appoint the wrong people, you must take responsibility for it. You can delegate authority, not responsibility,” he added.
The rumors should be ignored, the ministry claims, since the minister is working to fulfill his duties as the finance minister.
“The ministry wants to reassure the populace that these rumors are untrue.
Part of the statement issued on Tuesday, October 5, 2021 said, “Mr. Ken Ofori-Atta is at post and focused on his mission, granted to him by His Excellency the President, to serve the people of Ghana in his capacity as Finance Minister.
• Finance Minister, Ken Ofori-Atta is still at post
• According to a press release from the ministry, the minister is working assiduously in his given position
• This comes on the back of recent rumours that suggest he has resigned
A press release signed by its public relations unit indicates that its attention has been drawn to some rumors circulating on social media. The rumours, per the release, suggest that the minister has resigned from his position.
“The ministry wishes to assure the general public that there is no truth in these rumours. Mr. Ken Ofori-Atta is at post and focused on his mandate, given to him by His Excellency the President, to serve the people of Ghana in his capacity as Finance Minister,” part of the statement released on Tuesday, October 5, 2021 read.
The ministry further urged the general populace to disregard the rumours.
Ken Ofori-Atta, earlier this year was flown to the United States of America for treatment after contracting COVID-19.
He however returned shortly after to be vetted in parliament and to continue his duties as substantive finance minister under President Nana Addo Dankwa Akufo-Addo’s second term in government.
Finance Minister, Ken Ofori-Atta, has revealed that the government and the International Monetary Fund (IMF) will carry on with their negotiations on an economic programme for Ghana in the United States of America (U.S.A.).
He stated this during the signing of a $1.13 billion cocoa syndicated loan in Accra, which will ensure that the Ghana Cocoa Board (COCOBOD) meets its financing
needs for the 2022/23 cocoa crop season.
Mr Ofori-Atta said, “the ministry will go to Washington, DC at the end of the week to continue with these discussions,” while asserting that “we are very confident that the discussions that we are having with the Fund will put us in the right landing zone.”
The government of Ghana and the IMF, led by the Mission Chief for Ghana, Stéphane Roudet, on Monday, September 26, 2022, resumed formal negotiations for a Fund-supported programme. Ghana’s team is scheduled to leave
the country on Friday, October 7, 2022 for the US to resume negotiations.
Ghana formally contacted the IMF in July 2022 and asked for a comprehensive package to restore and maintain macroeconomic stability, guarantee sustainable and inclusive growth, and advance social protection.
The IMF/World Bank and the government of Ghana are currently conducting a debt sustainability analysis (DSA) in order to inform programme negotiations.
Interactions between Ghana and the IMF also include a review of the country’s medium-term macro-fiscal framework.
This means an intricate look at a three-year expenditure plan which sets out the medium-term expenditure priorities and budget constraints, as well as a focus on sectors that need to be developed and refined.
The Finance Minister, updating the press on the extent of Ghana’s engagement with the IMF, noted that the country needs a viable domestic financial system to support its development programme.
According to him, this is because Ghana has had limited access to the international capital market as a result of rating agencies downgrading its creditworthiness.
“Everything must, and will be done, to protect our financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both our domestic and external investors. Ghana has always had a collaborativeapproach with its partners, and we shall, I am confident, come out with an ‘historic arrangement,“ he said.
From January to July this year, Ghana’s overall fiscal deficit amounted to GH¢31.1 billion, which is 5.3% of the Gross Domestic Product (GDP).
Ghana’s inflation is at an all-time high, with 33.9% as of August 2022.
The struggling cedi has also seen a steep decline in value against the US dollar, by about 37.1%, as of September 27th, 2022.
Already, the IMF has established that Ghana’s economic challenges have been exacerbated due to the COVID-19 pandemic and the Russia-Ukraine war.
Meanwhile, as part of being transparent in its engagement with the IMF, the government has noted that it will set up a 5-member committee that will consist of prominent financial services professionals to engage key stakeholders in the financial services sector.
This will be in addition to ongoing engagements with civil society organizations (CSOs), social partners (labour unions, employers, and FBOs), persons in academia, industry professionals, and the leadership of Parliament.
The committee’s membership roster has not yet been made public.
The IMF programme Ghana is in search of is hinged on seven pillars, namely: Debt Sustainability; Fiscal Consolidation; Strengthening Monetary and Exchange Rate Policies; Building Strong Financial Institutions; Macro-Critical Structural Reforms; Maintaining Peace and Security; and Economic Growth and Transformation.
The issuing of government bonds by Databank, a bank that Ken Ofori-Atta, the finance minister, co-founded, has drawn harsh criticism from Prince Kofi Amoabeng, the former CEO of the now-defunct UT Bank.
Due to the conflict of interest the entity is in, he contends that it is unethical for Databank to be in this situation.
These two institutions are linked to the Finance Minister and the Minister of State at the Finance Ministry, Charles Adu Boahen respectively.
Reacting to this in a TV3 interview on Monday, Amoabeng wondered if the directors of Databank can have sound sleep after benefiting from the government bonds issuance.
He noted that “personally, I don’t really care about Databank because of me and Ken and what happened. But I think it is ethically wrong, certain things you don’t do just because there is a conflict of interest.
“As it is been reported that Databank and Black Stars have brokerage firms that are benefitting, really? If they can sleep in the night then they are tough people.”
The Chief Executive Officer of the now-defunct UT Bank, Mr. Prince Kofi Amoabeng, has claimed that the government is not doing enough to lessen the effects of the problems brought on by external forces.
He said that even while the government cannot control outside forces, it must take action to address domestic problems not brought on by external forces.
He remarked, “You must do all you can locally, for the external reasons you cant do much, what are you doing locally to limit the effect? ” on the Business Focus with Paa Kwesi Asare on TV3 on Monday, October 3.
Nothing is being done.
The administration hasn’t publicly stated that it will be cracking down on specific issues.
He further said President Nana Addo Dankwa Akufo-Addo and his Finance Minister Ken Ofori-Atta have failed in managing the economy well.
He said Mr Akufo-Addo must take responsibility for the failure of the Finance Minister because he is the appointor.
Speaking on the Business Focus with Paa Kwesi Asare on TV3 Monday October 3, he said “of course if you fail with the planning and management of the Finances of the country you have failed.
“So yes [the Finance Minister] has failed, there is no too waste about,”
When his attention was drawn to the fact that the President has expressed confidence in his appointees including Mr Ofori-Atta, Mr Amoabeng whose bank went under during the banking sector cleanup exercise undertaken by the Bank of Ghana, said “the president has failed first, so if you ask me, it is the president who has failed, everything starts with leadership, he appoints everyone and so if you appoint wrong people you must take responsibility for it. You can delegate authority not responsibility.”
“We are very confident that the discussions that we are having with the Fund will put us in the right landing zone. Officials from the ministry will go to Washington DC at the end of the week to continue with the discussions,” Ken Ofori-Atta said.
Providing an update on Ghana’s debt sustainability analysis, the Finance Minister said, “government is getting to a point of understanding the debt sustainability numbers with the IMF. I believe this programme will become a historic resolution as demonstration to other countries on the continent”.
According to a Bloomberg analysis, the Ghana Cedi has the second-worst performance of any currency in the world, trailing only the Sri Lankan Rupee.
The Cedi’s value decline against the US dollar in the first nine months of 2022, according to the worldwide news portal, was the worst in more than 30 years.
As a result of the development, the Ghana Cedi is currently ranked 147th among all major currencies worldwide.
Bloomberg further said the performance of the Cedi has made it the worst among 30 top-performing currencies on the African continent.
Ghana’s Finance Minister, Ken Ofori-Atta recently disclosed that the Ghana Cedi depreciated by 37.1 percent against the US Dollar as of September 27, 2022.
At the start of 2022, demand for forex overtook supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.
The situation resulted in the persistent depreciation of the Cedi against the major trading currencies.
As at July this year, the cedi lost its value by more than 20 percent to the US dollar.
In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an IMF support programme which is expected to be accessed in 2023.
Finance Minister Ken Ofori-Atta, according to Johns Hopkins University professor of applied economics Steve Hanke, has lost touch with reality on the performance of the Cedi.
On September 29, he said in a tweet that Ofori-Atta was “dreaming” to believe that the Bank of Ghana’s efforts to ensure the Cedi regains its value were “paying off.”
The Bank of Ghana’s attempts to control cedi depreciation, according to Ken Ofori-Atta, Ghana’s finance minister, are “paying off.”
Ofori-Atta must be dreaming, spoiler alert.
“The cedi has lost over 40% of its value against the USD since January 2020,” Prof. Hanke tweeted.
The economist who runs a project called ‘Troubled Currencies’ has consistently written off the local currency as the ‘central bank junk currency’ insisting that the only way to curb it depreciation was the installation of a currency board.
The Cedi has in recent times been experiencing a free fall against major trading currencies such as the US dollar.
At a point, some forex bureaus sold a dollar at GH¢10. The Bank of Ghana through its frequent hiking of the monetary policy rate has been trying to curb the situation.
The Finance Minister at a briefing on September 28 outlined other measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme which the central bank was implementing to stabilize the fall of the Cedi.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022,” he explained.
“The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,” Ken Ofori-Atta added.
As at July this year, for instance, the cedi lost its value by more than 20 percent to the US dollar.
In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an International Monetary Fund, IMF, support programme which is expected to be accessible in 2023.
Finance Minister Ken Ofori-Atta has hinted that government will soon review the Electronic Transfer Levy (E-Levy).
Currently, all electronic money users including mobile money customers are charged 1.5 percent of accumulative transfers that exceed GH¢ 100 in a day.
According to the Ministry of Finance, the proceeds from the E-Levy are woefully below projected numbers with only about 10 percent of the projected GH¢600 million monthly being realised.
Speaking at a briefing in Accra on Wednesday, Ken Ofori-Atta said that the review of the E-Levy forms part of measures to help improve the government’s domestic revenue mobilisation.
He added that the review is also targeted at ensuring that a lot of Ghanaians pay the levy.
“Such exercises form part of an ongoing drive to ensure we take significant steps forward in remedying long-standing challenges with domestic revenue mobilization, indiscipline, corruption and leakages.
“Of course, heightened tax compliance and increased tax audit exercises will continue to be complemented by policy initiatives that allow us to tap into a wider pool of taxpayers in the years ahead.
“Towards this therefore we are looking at areas around the E-Levy to ensure its efficient implementation,” he said.
He asserted that this would be the best course of action for the country as opposed to resorting to the International Monetary Fund for finance.
In October of last year, the government declared that it would present a revised Agyapa Royalties Agreement to Parliament for approval.
The Finance Minister, Ken Ofori-Atta, said the contract had been reworked to the government’s advantage while addressing at the inauguration of the newly appointed Board of the Minerals Income Investment Fund in Accra.
The Agyapa agreement
The Agyapa Minerals Royalties Investment agreement and four related documents to monetize Ghana’s future gold royalties were approved by Parliament on August 14, 2020.
In exchange, the firm will list on the London and Ghana Stock Exchanges (GSE) and raise at least $500 million for government to invest in infrastructure, health and education.
The offering will allow ordinary persons to buy a 49 percent interest in the corporation.
However, 22 civil society organizations demanded a suspension of the agreement, claiming it is not in Ghana’s best interests.
Akwasi Nsiah calls on government
Akwasi Nsiah, speaking on Badwam on Adom TV, lamented that Ghana cannot borrow every time when the country has royalties that can be leveraged for the same amount or even more.
As a result, he called for a bipartisan approach to help remove all impediments to the full implementation of the Agyapa deal.
Ken Ofori-Atta, the finance minister, has made hints that the administration will shortly revisit the Electronic Transfer Levy (E-Levy).
This occurs a few months after the divisive tax proposal was approved by a parliament with a majority support and put into effect.
Mobile money, bank transfers, and other electronic transfers were subject to a 1.5 percent fee.
The Ministry of Finance subsequently declared that the tax’s revenue was below the desired level after it was implemented.
It claimed that barely 10% of the anticipated monthly revenue of GH600 million was actually being received.
But Ken Ofori-Atta speaking at a press briefing in Accra on September 28 said the review of the E-Levy forms part of measures to help improve government’s domestic revenue mobilisation.
“Such exercises form part of an ongoing drive to ensure we take significant steps forward in remedying long-standing challenges with domestic revenue mobilization, indiscipline, corruption and leakages,” Ken Ofori-Atta said.
“Of course, heightened tax compliance and increased tax audit exercises will continue to be complemented by policy initiatives that allow us to tap into a wider pool of taxpayers in the years ahead. Towards this therefore we are looking at areas around the E-Levy to ensure its efficient implementation,” he explained.
Finance Minister Ken Ofori-Atta, according to Johns Hopkins University professor of applied economics Steve Hanke, has lost touch with reality on the performance of the Cedi.
On September 29, he said in a tweet that Ofori-Atta was “dreaming” to believe that the Bank of Ghana’s efforts to ensure the Cedi regains its value were “paying off.”
The Bank of Ghana’s attempts to control cedi depreciation, according to Ken Ofori-Atta, Ghana’s finance minister, are “paying off.”
Ofori-Atta must be dreaming, spoiler alert.
“The cedi has lost over 40% of its value against the USD since January 2020,” Prof. Hanke tweeted.
The economist who runs a project called ‘Troubled Currencies’ has consistently written off the local currency as the ‘central bank junk currency’ insisting that the only way to curb it depreciation was the installation of a currency board.
The Cedi has in recent times been experiencing a free fall against major trading currencies such as the US dollar.
At a point, some forex bureaus sold a dollar at GH¢10. The Bank of Ghana through its frequent hiking of the monetary policy rate has been trying to curb the situation.
The Finance Minister at a briefing on September 28 outlined other measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme which the central bank was implementing to stabilize the fall of the Cedi.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022,” he explained.
“The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,” Ken Ofori-Atta added.
As at July this year, for instance, the cedi lost its value by more than 20 percent to the US dollar.
In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an International Monetary Fund, IMF, support programme which is expected to be accessible in 2023.
Judges and Magistrates have lamented the non-payment of their allowances on time, disclosing that their allowances are in arrears for several months.
According to the President of the Association of Magistrates and Judges, Justice Henry Kwofie, these allowances form an important part of their conditions of services and called on the government to honour this obligation.
Speaking at an annual conference of Judges and Magistrates, Justice Henry Kwofie explained that at the alarming rate of hike in food prices, it is necessary for their allowances to be paid on time so that it is not devalued.
“As I speak I am told that the fuel allowances for the first quarter was released only last week to the judicial service…I think that this is very necessary and that the situation where we always have to fight. You will recall My Lords that even this year some previous allowances outstanding from last year were paid and that was because of the instrumentality of the Chief Justice.
“I think that situation is not acceptable, allowances are part of our remuneration and we are entitled to it and we must be paid and paid promptly especially taking into consideration the recent increases in the price of fuel and petroleum products,” he lamented.
Justice Henry Kwofie also raised concerns about some courts which are in a deplorable state across the country and called on government to fix them.
Although he acknowledged government’s effort being made toward the accommodation of Judges, Justice Henry Kwofie said more needs to be done with respect to Judges’ accommodation.
“We want to draw the attention of the authorities while carrying out this infrastructural development of the very deplorable situation of the Cape Coast court complex. The Association has decided that we will drum home this deplorable condition of the Cape Coast court complex.
“The Cape Coast court is not fit for the purpose for which it was built and something urgently needs to be done about the Cape Coast court because it is not even safe for the Judges and the staff who work in that building and there is also the issue of an abandon High Court complex in Wa,” he added.
Meanwhile, Chief Justice Kwasi Anin Yeboah has charged judges to play a role in safeguarding the cyber rights of citizens and treat all who come before them equally under the law.
“Yours is to dispense justice and to uphold the rule of law irrespective of public clamour,” the Chief Justice urged.
Amidst the worsening economic conditions and government’s plan to secure an IMF support programme, Finance Minister, Ken Ofori-Atta is hopeful of a “Ghana miracle” to salvage the economy.
Addressing the media on the state of the Ghanaian economy on Wednesday, the Minister said, “the sanctity and the well-functioning of the financial system are sacrosanct” and the country’s economy can only revive with the support and trust of all Ghanaians.
Ken Ofori-Atta in his address was optimistic and likened the revival of the country’s economy to the great Celtic Miracle in Ireland in the 1980s when Ireland was one of Europe’s poorest economies and described as the “beggars of Europe“.
However, Ireland’s economic situation changed in the 1990s and its economy recorded an impressive average growth rate.
This is the miracle Ken Ofori-Atta is hoping will materialise in the country’s economy.
“The sanctity and the well-functioning of the financial system are sacrosanct and we need the support and trust of all Ghanaians to deliver this. Let us join hands to get this done.
“The great Celtic Miracle in Ireland in the 1980s was the result of such collaborations, especially with Labour and we shall also be blessed with the Ghana Miracle,” the Minister said.
Meanwhile, the government in a bid to revive the economy has announced a 5-Member Committee consisting of prominent financial services professionals to lead extensive stakeholder engagements across all the key segments of the financial sector – banking, asset, management, pensions, and insurance – as part of moves to protect the financial system.
This is coming following the probability that the nation may undertake a debt restructuring programme.
The announcement of the Committee Members is expected to be made in the coming days.
According to Finance Minister, Ken Ofori-Atta, the committee will immediately get to work to engage key stakeholders in the financial services sector, additional to ongoing engagements with Civil Society Organizations (CSOs), social partners (labour unions, employers, and FBOs), academia, industry professionals, and the leadership of Parliament.
This, he says, is government ambition to protect the financial sector.
He claims that this is because Ghana’s creditworthiness has recently been downgraded to junk status by international rating agencies Moodys Fitch and Standards & Poor’s.
On September 28, Ken Ofori-Atta said during a news conference in Accra that the government is now concentrating on ensuring that it takes the required fiscal policy measures in order to reclaim access to the global capital market.
“Returning to the International Capital Market is going to take a bit of time. It will take about two to three years before we can be able to work on our ratings before that time. The recent downgrade is very unfortunate”, he said.
Over a period, demand for forex has overtaken supplies at a time when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.
This has led to the downgrading of Ghana’s creditworthiness, the depreciation of the local currency, and among others.
Ghana has now entered negotiations with the International Monetary Fund for a possible economic support programme which is expected to be accessed in 2023.
The Finance Minister, Ken Ofori-Atta, has stated that Ghana’s economy is on an upward trajectory despite the shocks that hit the economy.
According to him, the statistics show that the country can confront the challenges ahead.
He was speaking at a press briefing on Wednesday, September 28, 2022.
“Overall, our growth outturn of 3.4% and 4.8% in Q1 and Q2 of 2022 respectively, coupled with modest improvements in our fiscal position, suggests our economy is gradually on the upswing despite the numerous shocks we have faced over the past two years. These figures demonstrate that in spite of recent challenges, there has been economic growth, modest as the gains so far may be,” he said.
Ofori-Atta also stated that global external shocks have negatively affected the country’s balance of payment position.
“Undoubtedly, global risks remain on the horizon, including a strengthening US dollar and higher interest rates which negatively affect external borrowing,” he noted.
Finance Minister Ken Ofori-Atta has promised that the domestic financial industry will be protected during discussions at IMF negotiations while discussions on a sustainable debt path for the country are ongoing.
Given that a sustainable debt path is still essential for any IMF program, the Ghana Team, the World Bank, and the International Monetary Fund (IMF) are currently working on a debt sustainability analysis (DSA) to inform the program negotiations.
To sustain its development plans, the nation needs a strong domestic financial system, according to Mr. Ofori-Atta, particularly in the three years ahead with limited access to the international capital market.
“Therefore, everything must and will be done to protect our financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both our domestic and external investors.
“Ghana has always had a collaborative approach with its partners, and we shall, I am confident, come out with a ‘historic arrangement’.
“The sanctity and well-functioning of the financial system is sacrosanct, and we need the support and trust of all Ghanaians to deliver this,” he said.
In view of this, a 5-member committee consisting of financial services professionals across the banking, asset management, pensions and insurance sectors is being formed to engage key stakeholders in the financial services sector.
“An announcement of the Committee Members will be made in the coming days, and they will immediately get to work to engage key stakeholders in the financial services sector – in addition to ongoing engagements with Civil Society Organisations (CSOs), social partners (labour unions, employers and FBOs), academia, industry professionals and the leadership of Parliament,” the minister mentioned.
He assured that government will ensure a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection.
Debt restructuring concerns
Bankers have expressed concern about how an imminent debt restructuring will impact the asset structure, earnings and operations of banks.
The sector has entreated managers of the economy to be circumspect in their decision-making, so as not to destabilise the budding financial sector and erode recent gains made… especially as pertains to investor confidence.
According to budget figures, Ghana spent GH¢20.5billion (US$2billion) in first-half of the year paying its debts – or 68 percent of its tax earnings. By the end of June, the total amount owed by government had risen to GH¢393.4billion, or 78.3 percent of GDP.
In response, Ghana started a proposed three-year enhanced domestic programme engagement with the IMF in July for US$3billion – joining a number of emerging markets that are being forced to default or restructure some of their debts this year.
This was done after efforts to stop the sell-off of its Eurobonds and halt a record depreciation of the cedi currency against the dollar – including cutting discretionary state spending by as much as 30 percent – failed.
With the expectation of a tough business environment in the near-term, banks are reviewing existing operations and investment strategies to ensure sustainable performance as they remain risk-aware and undertake effective credit management processes.
In the midst of worsening economic circumstances and the government’s plan to secure IMF support, Finance Minister Ken Ofori-Atta is hoping for a “Ghana miracle” to revive the economy.
Speaking to the media on Wednesday about the state of the Ghanaian economy, the Minister stated that “the sanctity and the well-functioning of the financial system are sacrosanct” and that the only way for the economy to recover is with the help and confidence of all Ghanaians.
In his speech, Ken Ofori-Atta was positive and compared the country’s economic revival to the great Celtic Miracle in Ireland in the 1980s, when Ireland was one of Europe’s poorest economies and was dubbed the “beggars of Europe.”
However, Ireland’s economic situation improved in the 1990s, and the country’s economy experienced impressive average growth rates.
This is the miracle Ken Ofori-Atta is hoping will materialise in the country’s economy.
“The sanctity and the well-functioning of the financial system are sacrosanct and we need the support and trust of all Ghanaians to deliver this. Let us join hands to get this done.
“The great Celtic Miracle in Ireland in the 1980s was the result of such collaborations, especially with Labour and we shall also be blessed with the Ghana Miracle,” the Minister said.
Meanwhile, the government in a bid to revive the economy has announced a 5-Member Committee consisting of prominent financial services professionals to lead extensive stakeholder engagements across all the key segments of the financial sector – banking, asset, management, pensions, and insurance – as part of moves to protect the financial system.
This is coming following the probability that the nation may undertake a debt restructuring programme.
The announcement of the Committee Members is expected to be made in the coming days.
According to Finance Minister, Ken Ofori-Atta, the committee will immediately get to work to engage key stakeholders in the financial services sector, additional to ongoing engagements with Civil Society Organizations (CSOs), social partners (labour unions, employers, and FBOs), academia, industry professionals, and the leadership of Parliament.
This, he says, is government ambition to protect the financial sector.
Efforts put in place by the government and the Bank of Ghana to arrest the free fall of the cedi against major trading currencies, especially the US dollar, are paying off.
This was disclosed by the Minister of Finance, Ken Ofori-Atta, when he briefed the press on Wednesday, September 28, 2022.
Recent data from the Finance Ministry show that the cedi has depreciated by 37.1% against the US dollar as of September 27, 2022.
The cedi is currently struggling on the forex market as it is selling close to 10 cedis per dollar.
Ofori-Atta was hopeful the cedi will experience an appreciation in the coming days following the several measures introduced.
He further indicated that the Bank of Ghana has also introduced enhanced measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022. The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year.”
“Additionally, the Bank of Ghana has introduced enhanced measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi, which is now slowing down,” he added.
Economy on gradual upswing despite numerous shocks
Mr. Ofori-Atta also said Ghana’s economy is recording some marginal growth despite recent ravaging shocks.
“Overall, our growth outturn of 3.4% and 4.8% in Q1 and Q2 of 2022 respectively, coupled with modest improvements in our fiscal position, suggests our economy is gradually on the upswing despite the numerous shocks we have faced over the past two years,” he said at a press briefing on Wednesday.
“These figures demonstrate that in spite of recent challenges, there has been economic growth, modest as the gains so far may be,” the Finance Minister added.
Mr. Ofori-Atta said this progress gives Ghana a solid foundation to confront its economic challenges head-on.
Finance Minister, Ken Ofori-Atta says government will fast-track negotiations with the International Monetary Fund (IMF) to ensure key aspects of the programme are reflected in the 2023 budget statement.
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 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 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.”
Efforts put in place by the government and the Bank of Ghana to arrest the free fall of the cedi against major trading currencies, especially the US dollar, are paying off.
This was disclosed by the Minister of Finance, Ken Ofori-Atta, when he briefed the press on Wednesday, September 28, 2022.
The cedi is currently struggling on the forex market as it is selling close to 10 cedis per dollar.
Ofori-Atta was hopeful the cedi will experience an appreciation in the coming days following the several measures introduced.
He further indicated that the Bank of Ghana has also introduced enhanced measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022. The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year.”
“Additionally, the Bank of Ghana has introduced enhanced measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi, which is now slowing down,” he added.
The economy is on a gradual upswing despite numerous shocks
Mr. Ofori-Atta also said Ghana’s economy is recording some marginal growth despite recent ravaging shocks.
“Overall, our growth outturn of 3.4% and 4.8% in Q1 and Q2 of 2022 respectively, coupled with modest improvements in our fiscal position, suggests our economy is gradually on the upswing despite the numerous shocks we have faced over the past two years,” he said at a press briefing on Wednesday.
“These figures demonstrate that in spite of recent challenges, there has been economic growth, modest as the gains so far may be,” the Finance Minister added.
Mr. Ofori-Atta said this progress gives Ghana a solid foundation to confront its economic challenges head-on.
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.”
In order to be eligible for a supported program, the government must complete the debt sustainability analysis with the International Monetary Fund, according to Finance Minister Ken Ofori-Atta.
He claims that no decision has been made about the specifics of any debt operations yet.
He stated, “we simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of concluding the debt sustainability review,” in a press conference on September 28, 2022.
As we work to expedite the IMF discussion process, the government shall continue to aggressively engage all stakeholders in a clear and transparent manner.
The Ministry of Finance on September 26, 2022, said the new IMF mission in Ghana is currently underway to conduct a debt sustainability analysis.
Ofori-Atta, however, stated that the IMF and Government Team are working to update the medium-term macro-fiscal framework to inform IMF programme design.
“Also, the Government Team and the IMF Team are discussing policy measures and structural reforms proposed in our economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, and fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection,” he noted.
He, therefore, reiterated the government’s commitment to ensure that the country’s financial sector is protected.
