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In order to support the economy, Ghana’s new administration may ask the IMF for additional funds during its three-year agreement with the institution, Cassiel Ato Forson, the finance minister-designate, stated Thursday.
After defeating the candidate of the ruling party in the December election, President John Dramani Mahama appointed the former minority leader in parliament to the important position of finance minister. Mahama took office this week.
As Forson told reporters prior to a meeting with an IMF team now in Accra, “We are committed to working with the IMF, but we also want to ensure that we can raise financing; additional finance, working with IMF and other domestic, international partners.”
“The reliance on Treasury bills and others has not been very helpful,” said Forson, who also served as a deputy finance minister before. “There is a lot of wastage in the system and we will cut them,” The action will also assist the government in resuming the issuing of domestic bonds by the middle of the year, he added.
The West African cocoa and gold producer went into harsh restructuring at the end of 2022 after defaulting on the majority of its foreign debt.
Forson stated that Mahama’s administration would reach an agreement with its non-Eurobond commercial creditors to wrap up the process.
During the campaign, the incoming president, who had served from 2012 to 2017, promised to renegotiate the conditions of Ghana’s rescue agreement with the IMF.
However, despite that campaign rhetoric, market participants believe he had little leeway and was unlikely to leave the present IMF program.
Source: Ghanatodayonline.com
