Confirmed! IMF Bailout Process Begins In January 2015 – Mahama

President John Mahama has revealed that the International Monetary Fund (IMF) bailout process expected to elevate Ghana from its economic woes will begin in January 2015.

According to the President, the IMF and the World Bank would collaborate to ensure a sustainable growth path for Ghana’s economy.

Ghana’s economy has faced numerous challenges recently, amidst rising inflation, a depreciating currency, high budget deficit amongst others, hence the decision to turn to the IMF.

Speaking at an Investment Working Lunch for African Heads of State and Government at the New York Stock Exchange, President John Mahama said he expects the IMF programme being considered by his government to create a strong social intervention plan which will cushion the poor.

“It is my hope that by January we should start a 3-year IMF programme to try and stabilise the macroeconomic environment, but also undertake a strong programme of institutional reforms in order that we create a sustainable base for the macro economy to be sustainable over time,” he added.

He said, “We anticipate that the preliminary talks should be over by this week, the 25th and then we will continue during the annual meetings of the World Bank and the IMF.

President Mahama was hopeful such a move will create an enabling environment for the private sector to grow and also increase foreign direct investment as well as boost domestic investments.

“I want to see a strong social intervention programme that helps to cushion the poor and vulnerable in society.”

Meanwhile, the Trades Union Congress (TUC) had warned government to desist from any move to go to the International Monetary Fund for a bailout in the midst of current economic challenges facing the country.

The first round talks between the IMF team and Ghana will end on Thursday September 25. The IMF team led by Joël-Toujas-Bernaté has been meeting government officials, the private sector and donor partners.

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