Follow the bailout plan to the letter, the IMF counsels Ghana.
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“IMF Urges Ghana’s Adherence to Bailout Plan: A Path to Economic Stability”.
The International Monetary Fund (IMF) is strongly urging Ghana to remain steadfast in its commitment to the fund program to ensure the country maximizes the benefits of the ongoing bailout package.
The IMF emphasizes the critical need for effective implementation of structural reforms, particularly following the disbursement of the $600 million second tranche. This call comes at a time when the Ghanaian government is reportedly exploring engagements with the IMF to address the anticipated revenue shortfall resulting from the planned suspension of the Value-Added Tax (VAT) on electricity.
Abebe Selassie, Director of the African Department at the IMF, stresses the importance of Ghana adhering to the agreed-upon austerity measures as a crucial step in navigating its way out of the prevailing economic crisis. He emphasizes the necessity for Ghana to maintain the course laid out in the program, which is designed to be implemented over a span of three to four years. Selassie underscores the significance of Ghana’s unwavering commitment to the program’s implementation over the next three years, highlighting its critical role in achieving economic stability and growth.
In late January, the Bank of Ghana confirmed receipt of US$600 million as the second tranche for budgetary support and currency stabilization efforts. This brings the total disbursement to US$1.2 billion out of the $3 billion approved under the three-year extended credit facility in May 2022.
The IMF has expressed satisfaction with Ghana’s performance under the program, noting positive outcomes from implemented reforms and emerging signs of economic stabilization. Selassie acknowledges Ghana’s effective program implementation, particularly evident during the first program review conducted recently. He emphasizes the government’s efforts in addressing significant imbalances faced in the previous year and notes positive signals from official creditors regarding their commitment to providing debt relief in line with Ghana’s needs. The recent presentation to the Board reflects the IMF’s continued support for Ghana, aligned with program implementation goals.
Looking ahead, Ghana’s next IMF program review is scheduled for June 2024, signaling a pivotal milestone for the country’s ongoing engagement with the IMF. The anticipated third tranche, estimated at approximately US$360 million, underscores the continued financial support and collaborative efforts aimed at fostering sustainable economic development and recovery in Ghana.
In summary, Ghana’s adherence to the IMF program’s objectives and commitments remains paramount for realizing long-term economic stability and growth. As the country navigates through challenging economic landscapes, maintaining momentum in program implementation and fostering strong partnerships with international stakeholders will be instrumental in achieving desired outcomes and unlocking new opportunities for prosperity.
source : citinewsroon.com
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