The International Monetary Fund is urging Ghana to stay committed to its bailout program in order to fully reap its benefits.
The IMF has stressed the importance of effective implementation of structural reforms, especially following the disbursement of the $600 million second tranche to the government.
Ghana’s efforts to engage the IMF for consensus on anticipated revenue shortfalls due to the planned suspension of the VAT on electricity are facing opposition from the Trades Union Congress (TUC). Despite this, the IMF’s Director of the African Department, Abebe Selassie, has emphasized the necessity for Ghana to adhere strictly to the agreed-upon austerity measures to navigate its way out of the economic crisis.
He further noted that Ghana is showing positive performance within the program, with reforms yielding results and indications of economic stabilization becoming evident. The Bank of Ghana confirmed the receipt of $600 million as the second tranche intended for budget support and currency stabilization, out of the approved $3 billion under the three-year extended credit facility granted in May 2022.
The next review of Ghana’s IMF program is scheduled for June 2024, aimed at securing the third tranche of around $360 million. The IMF is optimistic about Ghana’s program implementation and looks forward to continuing to support the country in line with program implementation. This information was put forth through the IMF’s Director of the African Department, Abebe Selassie.
The IMF also provided crucial advice that it would be really important that Ghana continues to implement the program that they have developed as envisaged. According to him, these measures are vital for Ghana’s economic prosperity. He emphasized the need for Ghana to adhere strictly to the agreed-upon austerity measures to navigate its way out of the economic crisis.
It is crucial for Ghana to stick to the course and see the program being implemented over the next three years. Abebe Selassie also noted that official creditors are signaling they will provide debt relief, consistent with what Ghana needs.
In conclusion, the IMF is optimistic about Ghana’s performance within the program and looks forward to continuing to support the country, consistent with program implementation to secure a brighter economic future.
