The Ministry of Finance and the Bank of Ghana have commenced discussions with the International Monetary Fund (IMF) for the second time for an IMF-supported programme.

The government is also expected to begin negotiations with the IMF this week which will last for about two weeks.

“Government negotiations with respect to the IMF-supported programme is commencing this week and we are optimistic about making progress in our discussions,” a statement issued by the Ministry noted.

In order to achieve a programme from the IMF, the government says it has put together a “comprehensive post COVID-19 economic programme which will form the basis for the IMF negotiations.”

This programme, the Ministry said is to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.

Meanwhile, the Ministry of Finance has disclosed that it is currently undertaking a debt sustainability analysis to confirm the country’s debt sustainability.

The Ministry in a statement on Monday, September 26 said this is necessary as it is a prerequisite for an IMF Programme.

The IMF has also announced that its economic programme with Ghana will focus heavily on debt sustainability.

This was captured in a Question and Answer statement issued by the IMF as it begins deliberations with the Government of Ghana on an Economic Programme aimed at stabilising Ghana’s economy. 

The IMF also added that the programme will support the credibility of government policies, restore confidence in the central bank’s ability to manage inflation and accumulate foreign exchange reserves to help the local currency withstand headwinds.

On the Fiscal sector, the IMF noted that an important policy objective would be to increase revenues, critical for debt sustainability while safeguarding spending on health, education, and social protection.

Details of the engagement

Dr. Stephane Boudet is expected to lead the IMF mission team members made up of senior economists, research analysts, and communication officers.

Joy Business is learning that issues about the country’s current fiscal position as well as steps taken to improve the revenue situation will come up.

The IMF team will engage the Finance Minister, Ken Ofori-Atta, the Governor of the Bank of Ghana, Dr. Ernest Addison, Vice President Dr. Mahamudu Bawumia, some business associations, civil society groups and parliament.

 The IMF in its Question and Answer statement maintained that the engagement follows several visits in recent months to engage with the authorities.