Gov’t To Renegotiate IMF Deal

Ken Ofori-Atta

Government has hinted that it will renegotiate Ghana’s deal with the International Monetary Fund (IMF) under the three-year extended credit facility programme.

An IMF team is already in town and expected to meet government’s economic management team this week, Finance Minister Ken Ofori-Atta told journalists Sunday.

He said such modifications were necessary in order for economic developments to take place.

“The IMF programme is firmly on course and we remain committed to successfully conclude the last year of the programme. However, this happens to be the first time where an IMF programme has spanned two governments,” he said.

He pointed out that government’s new fiscal policy regime warranted the re-negotiation.

“We will need to sit down with the IMF to discuss how well the programme fits within our stated goals and objectives and discuss and agree on any tweaking that we may do going forward, he said, stressing that the review grant government the fiscal space needed to implement its economic policies.

Mr Ofori-Atta further stated that government was on course to meeting investors who would help fulfill the campaign promise of establishing a factory for each district of Ghana.

He added that government required some fiscal space to attain the objective.

“Clearly, we have issues of certain areas and commitments that we have brought to the table, and all of those will be considered as we revamp what we all need to do to ensure that fiscal consolidation is not derailed in any manner,” he said.

The International Monetary Fund (IMF) approved a three-year arrangement under the Extended Credit Facility (ECF) for Ghana in an amount equivalent to US$918 million in support of the authorities’ medium-term economic reform programme.

The programme is aimed at restoring debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.

As part of the arrangement, government was expected to ensure zero percent financing from the Central Bank, remove subsidies in some areas and cut down on expenditure.

By Samuel Boadi

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