{"id":1211200,"date":"2022-09-26T13:29:47","date_gmt":"2022-09-26T13:29:47","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/09\/26\/ghana-imf-negotiations-to-stabilise-economy-underway\/"},"modified":"2022-09-26T13:29:47","modified_gmt":"2022-09-26T13:29:47","slug":"ghana-imf-negotiations-to-stabilise-economy-underway","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/09\/26\/ghana-imf-negotiations-to-stabilise-economy-underway\/","title":{"rendered":"Ghana, IMF negotiations to stabilise economy underway"},"content":{"rendered":"

<\/p>\n

\n\"Ghana,<\/p>\n

\nSt\u00e9phane Roudet – IMF Mission Chief to Ghana <\/p>\n<\/div>\n

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Ghana and the International Monetary Fund (IMF) today, Monday opened formal negotiations for an economic programme, necessary to forestall a debt default and stabilise the economy in the short-to-medium term.<\/h2>\n

It followed the arrival of an IMF delegation, led by the Mission Chief to Ghana, St\u00e9phane Roudet, in Accra over the weekend.<\/p>\n

The team will be in the country between now and October 7, 2022, a statement from the IMF said.<\/p>\n

The negotiatons with the government team are meant to determine the form that an economic stabilisation programme, which will be Ghana\u2019s 17th with the fund since 1957, should take and when it can kick off.<\/p>\n

It would also explore the nature of the policies, reforms and programmes that the loan support should entail.<\/p>\n

Challenges<\/strong><\/p>\n

The negotiations come at a time when the economy is facing one of its worse challenges in recent times.<\/p>\n

On Friday, Fitch Ratings downgraded the economy to CC from CCC, which is the country\u2019s worst rating ever.<\/p>\n

Read also:\u00a0Fitch downgrades Ghana to CC from CCC<\/p>\n

The agency said the downgrade followed \u201cincreased likelihood that Ghana will pursue a debt restructuring given mounting financing stress.\u201d<\/p>\n

Request<\/strong><\/p>\n

The government approached the fund for support in July this year after mounting debts in the midst of weak revenues fueled large fiscal deficit, rising inflation, a weakening currency and a general hike in cost of living.<\/p>\n

Following the approach, a fact-finding team from the IMF arrived in July\u00a02022 for discussions with the government after which it called for a debt sustainability analysis (DSA).<\/p>\n

Although the results of the analysis are yet to be known, Graphic Online<\/strong> understands that the fund has asked the government to consider a debt restructuring with its creditors to help bring the debt to sustainable levels, necessary for a fund programme to begin.<\/p>\n

The results of the negotiations will form the basis for a staff decision on Ghana\u2019s request, which will then be submitted to the IMF executive Board for consideration.<\/p>\n

According to the Finance Minister, Ken Ofori-Atta, President Nana Addo Dankwa Akufo-Addo wants a deal concluded by December 2022 to allow for a quicken recovery of the economy.<\/p>\n

Duration<\/strong><\/p>\n

Discussions and negotiations for the country\u2019s most recent programme in 2015 took around seven months to conclude.<\/p>\n

Meanwhile, Graphic Online<\/strong> was earlier informed that the country could get up to $3 billion to stabilise its reserves and also open up access to the international capital market for lending.<\/p>\n

The country was shut out of the market this year over the high debts.<\/p>\n

\"\"<\/p>\n<\/div>\n