IMF Deal Goes To Parliament

Dr. Anthony Osei Akoto

Government has indicated that it would table details of a renegotiated deal with the International Monetary Fund (IMF) before Parliament for approval.

Minister-designate for the newly-created Ministry of Monitoring & Evaluation, Dr. Anthony Akoto Osei, who disclosed this to Accra-based Citi Fm recently, explained that government had adopted such a stance as a corrective measure.

According to him, the immediate-past National Democratic Congress (NDC) administration, led by former President John Dramani Mahama, should have tendered the initial agreement of Ghana’s 3-year Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF) for approval but it neglected that process even though the laws of the country stipulated that that should be done.

Dr Akoto Osei said a renegotiation of the deal has become necessary following some reviews of the programme over the period.

“Even though the IMF programme was signed by government, it was never approved by Parliament. It was an Executive arrangement between the Government of Ghana and the IMF but the people of Ghana have not supported it. So it is in the interest of the IMF first and foremost to make sure that any programme they have with Ghana is approved by Parliament. And NPP government will make sure that they are doing things in consonance with our constitution.”

Government’s economic management team was billed to meet yesterday to discuss the renegotiation of the IMF agreement.

The NDC administration signed the deal for a 3-year Extended Credit Facility (ECF) Programme for Ghana with the IMF, for a total support of US$918 million in 2015.

The three-year economic reform programme aims to support growth and help reduce poverty by restoring macroeconomic stability through an ambitious and sustained fiscal consolidation, a prudent debt management strategy with improved fiscal transparency and an effective monetary policy framework.

On September 28, 2016, the Executive Board of the International Monetary Fund (IMF) completed the third review of Ghana’s economic performance under the programme supported by an Extended Credit Facility (ECF) arrangement. Completion of the review enabled the disbursement of SDR 83.025 million (about US$116.2 million), bringing total disbursements under the arrangement to SDR 332.1 million (about US$464.6 million).

During the review, adjustments were made to the programme to ensure that it remained on track.

The Executive Board also granted waivers, including minor deviations in a few programme targets.

Ghana’s three-year arrangement for SDR 664.20 million (about US$918 million or 180 percent of quota at the time of approval of the arrangement) was approved on April 3, 2015.

By Samuel Boadi