Ghana’s quest for a bail out programme from the International Monetary Fund will soon be finalised as a team of officials from the Bretton Woods institution are expected in town within two weeks to firm up bail out discussions.

Ghana last month put forth a formal request for a possible bail out from the Washington-based lender.

Government had indicated that it was turning to the Fund to help stabilise the economy and the Ghana cedi. 

Speaking at a news conference in Washington, US Director of Communications, Gerry Rice said the IMF is yet to decide on the program it would prescribe for Ghana.

He said an IMF mission should arrive in Ghana soon.

Joy Business sources indicated the IMF mission should arrive by September 15 to begin discussions with governmen and conclude discussions by September 26.

Meanwhile, a careful look at the various staff report on Ghana  by the IMF would gives a fair idea about what  the Fund is likely to be pushing for when discussions start with managers of the economy.

There has always been a push for government to cut down on the amount of money it spends on compensating public sector workers – something that would mean that under an IMF programme for Ghana, there is the likelihood for government to lay off some of  public sector workers, and carry out an aggressive program to weed out the  ghost names on the public wage bill. 

However with a similar proposal in government's home grown policy which could see the state carry out staff rationalisation programme subsequently,  it looks like there are some agreement on this approach in cutting down the public wage bill. 

Ghana could also be advised to cut down subsidising petroleum products and utility tariffs to help reduce government’s ballooning debts and budget deficit.

 On the monetary  side, the Washington-base lender, could be asking the central bank to carry out  further policy rate hikes  to help contain inflation with has hit a four year high.

This would likely lead to the cost of credit shooting up for businesses and individuals.

However one area that could see the Ghana and IMF disagree on is what time should it take for the budget deficit and accumulation  of more debts to be reduced .

While government is looking a three year period, the IMF thinks this  should be done within two years.

Gerry Rice confirms the date for the arrival of the IMF in the attached audio below: