The IMF agreement will prepare Ghana to return to the capital market to borrow – Akufo-Addo

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Ghana’s recent IMF agreement has been defended by President Nana Addo Dankwa Akufo-Addo as an effort to stabilize the nation’s economy.

The International Monetary Fund (IMF) gave Ghana GHC600 million as the first installment of a GHC3 billion bailout to help the country recover economically and restore macroeconomic stability.

President Akufo-Addo stated during a panel discussion broadcast on Bloomberg TV at the 2023 Qatar Economic Forum that given the country’s current economic circumstances, Ghana must apply for assistance from the Fund.

He said that the assistance from the Bretton Woods institution will put the nation in a position to return to the global capital market.

“Before the COVID- pandemic the Ghanaian economy had achieved microeconomic stability and was in the process of rapid growth. Come the Covid-19 pandemic, followed by the Russia-Ukraine disaster these had a tremendous impact on our economy. Suddenly, we were facing major challenges on our balance of payment, our currency was in steep decline, interest rates went out of the window, inflation… and that is what forced us to seek the assistance of the Fund…”

“At this point, we feel that the IMF accord will give us the groundwork for reorienting the economy; repositioning the Ghanaian economy in order to first regain the lost microeconomic stability. The president said, “Second, to position us to be able to return to the international capital market. Finally, to be able to better control critical indicators like interest rates and inflation.

After securing the US$3 billion lifeline from the IMF last week, Ghana’s central bank paused its most severe phase of monetary tightening, and Ghana now anticipates the decline in inflation to continue.

President Akufo-Addo remarked in a speech at the ongoing Qatar-Africa Economic Forum in Doha that his government is fully aware of its commitments and will uphold them.

“The global situation has not been kind to incumbent governments all over the world and I think our situation will be no different but at the same time, I believe we have enough time.

“We have eighteen months, I am to leave office in January 2025, so 19 months from now to be able with a very disciplined approach, implement the IMF programme and reposition our economy to be able to bring some growth back and some relief back to the population.

“…to also be able to convince them that yes, it is worth continuing the journey that my party started.”

President Nana Akufo-Addo mentioned the advantages of the IMF bailout and predicted that Ghana will soon rejoin the global capital markets.

This, according to Mr. Akufo-Addo, will allow his government to obtain the funding required to carry out its purpose.

He claims that his government and he are extremely concerned about the country’s capital market being closed.

“We have positioned ourselves to be able to go back into the International market, which had been a source of funding for us during the first three or four years of our government,” he stated on May 23.

As part of its efforts to strengthen fiscal policy, the administration claims it is taking the appropriate actions to examine all current flagship programs.

This was stated in Ghana’s country report from the IMF in May 2023.

The Fund has already criticized one of the flagship programs, Free SHS, for being inadequately targeted and for the low learning outcomes the nation’s educational system generates.


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