According to Kristalina Georgieva, the Managing Director of the International Monetary Fund, an agreement between Ghana and the IMF should be negotiated and signed before the year is through.
On Monday, September 5, 2022, the IMF chief met in private with President Nana Addo Dankwa Akufo-Addo in Rotterdam, Netherlands, as part of the Africa Adaptation Summit, and assured him that “we understand the urgency” and “we would move as swiftly as feasible.”
She referred to Ghana as a “superb country” and reaffirmed the Fund’s commitment to working with the government and the ministry of finance to secure a deal before the year’s end.
On his part, President Akufo-Addo indicated to the IMF boss that a lot of work has been done by Cabinet and the Ministry of Finance, and the document to be presented by the Ghana side “is ready for the scrutiny of the IMF.”
However, Kristalina Georgieva has underlined that external shocks rather than domestic factors are to blame for Ghana’s current economic difficulties.
Contrary to the claim made by some opposition groups that Ghana’s problems are not related to any poor policies of the Akufo-Addo administration, the IMF chief claimed that the variables are exogenous in a speech on the fringes of the Fund’s interactions with the Ghanaian delegation.
“We have started very constructive discussions already and to the people of Ghana, like everybody on this planet, you have been hurt by exogenous shocks” she stated.
She mentioned the extraneous factors which have contributed to Ghana’s economic woes, leading to the West African country seeking a programme from the IMF.
“First the pandemic, then Russia’s war in Ukraine. We need to realize thar it is not because of bad policies in the country but because of this combination of shocks, and, therefore, we have to support Ghana”, she said.
She also indicated that Ghana is a member of the IMF, “a strong country with fantastic people”, and as such it is incumbent on the Fund to lend the country support.
Kristalina Georgieva also indicated “we have to support Ghana because your strength contributes to the strength of your neighbours; it contributes to a stronger world”
To help the country get through the harsh economic dilemma it is in as a result of the negative impacts of the fatal coronavirus outbreak and the ongoing conflict between Russia and Ukraine, Ghana is asking the IMF for US$3 billion.
In some instances, President Akufo-Addo has said, “We have decided to seek the collaboration of the International Monetary Fund (IMF) to repair, in the short term, our public finances, which have suffered significantly as a result, while we continue to work on the medium- to long-term structural changes that are at the core of our goal of creating a Ghana Beyond Aid, that is building a resilient, robust Ghanaian economy.”