Business News of Tuesday, 9 May 2017
World Bank Country Director Henry Kerali has confirmed the International Monetary Fund (IMF) is in discussions with Ghana over extension of the Fund program.
This confirms earlier reports by JOYBUSINESS that government is likely to extend the fund program which should have ended in April 2018.
The move JOYBUSINESS understands has been influenced by IMF’s concerns that Ghana may not be able to implement the critical reforms before the original completion date of April 2018.
Mr. Kerali said they are currently waiting for IMF and Ghana to reach agreement on the extension and adjustment of program targets.
He also added that he does not expect an extension to have any negative impact on the economy.
“We will wait for the discussions on the extension to be concluded before the programme as revised will be announced to the public.
Regarding opting for a crush programme, he said World Bank is always looking at a sustainable programme which is also the objective of both the government and the IMF to come to an agreement on a sustainable fiscal framework.
He added that such a sustainable framework can boost growth, bring the country out of its current debt levels and help fight poverty.
“We are in very much support of a sustainable programme in the medium term for Ghana not just for the IMF or World Bank.
Suspending guarantee for Independent Power Producers
In a separate development, the World Bank says it has withdrawn any form of financial guarantee to private firms venturing into power generation in Ghana.
The move it says has been influenced by what it calls the oversupply of power in the country, a development that the World Bank says does not make economic sense to extend this support to firms going into this space.