Work with greater alacrity for a programme with IMF – Mahama tells gov’t

• Posted on October 5, 2022October 5, 2022
• by Nana Kwesi Coomson
• Comment

The government of Ghana must work with a greater alacrity to get a programme with the International Monetary Fund (IMF), former President Mahama has said.

In his view, Ghana needs a programme to create a more predictable economic outlook.

In a tweet, Mr Mahama said “Distressing! Every passing day makes our economic situation worse. Gov’t must work with greater alacrity to lock in a programme with the Fund in order to create a more predictable economic outlook.”

Ghana has commenced discussions with the Fund for a programme in order to deal with the economic challenges.

The Finance Minister, Ken Ofori-Atta at a press briefing on Wednesday, September 28assured that the government will expedite discussion for the programme.

“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 said.

He also announced that a 5-member committee consisting of prominent financial services professionals has been put together by the government to lead extensive stakeholder engagements across all the key segments of the financial sector – banking, asset, management, pensions, and insurance.

He said the announcement of the Committee Members will be made in the coming days.

“They 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,” he said.

Mr Ofori-Atta further stated that the IMF and Government team are working to update the medium-term macro-fiscal framework to inform IMF programme design.

Also, he added, they are discussing policy measures and structural reforms proposed in the economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection.

“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis.

“Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process. Ghana needs a viable domestic financial system to support its development programme, especially in these three years 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 an ‘historic arrangement’.

By Laud Nartey