Governor of the Bank of Ghana (BoG) Dr Ernest Addison has said that on the fiscal policy, the Monetary Policy Committee noted that the budget statement for 2023 has set fiscal policy on a consolidation path.<\/strong><\/p>\nHe says this is consistent with key elements agreed with the International Monetary Fund (IMF) at the Staff Level in December 2022.<\/p>\n
The domestic debt exchange programme launched by the government, new revenue measures, and structural fiscal reforms will provide significant reduction of debt service and help create fiscal space, Dr Addison stated.<\/p>\n
Addressing the 111th Monetary Policy Committee (MPC) press conference in Accra on Monday, March 27, he said the fiscal outlook is contingent on financing of the budget and will require the conclusion of the domestic debt exchange programme as well as securing the requisite financing assurances from bilateral donors. Indications are that these discussions are proceeding well.<\/p>\n
\u201cBased on the above, it is imperative that Parliament prioritizes the passage of the revenue bills currently before it,\u201d Dr Addison said.<\/p>\n
He further intimated that under the Staff Level Agreement with the IMF, the Bank of Ghana and the Ministry of Finance have finalised a Memorandum of Understanding on zero financing to the budget, which will be signed shortly.<\/p>\n
\u201cThe passage of the relevant revenue bills by Parliament will therefore conclude the required prior actions to advance Ghana\u2019s programme to the IMF Executive Board.<\/p>\n
\u201cThis will be critical in resetting the economy on the path of recovery, including putting it firmly on a disinflation path and sustained growth,\u201d he said.<\/p>\n
Last week,\u00a0Finance Minister Ken Ofori-Atta, led a high-level delegation from the ministry to China to engage in bilateral talks with his Chinese counterpart and other Chinese officials.<\/p>\n
The Finance Ministry said that Mr Ofori-Atta had\u00a0very positive and encouraging meetings in China.<\/span><\/p>\nThe Ministry said they were looking forward to securing external assurances very soon.<\/span><\/p>\n\u201cSo far had very positive and encouraging meetings in China! Looking forward to securing external assurances very soon, even as we pass our outstanding domestic revenue bills back home. Great progress on all fronts\u2026<\/span>#ResolvingTogether<\/a><\/span>\u00a0#GhanaFirst,\u201d the Office of the Finance Minister tweeted on Friday.<\/span><\/p>\nMr Ofori-Atta also mentioned to the Chinese Finance Minister Liu Kun the\u00a0Domestic Debt Exchange Programme\u00a0that has been introduced by the government as an indication that Ghana was ready to take the necessary action to readjust its fiscal path.<\/p>\n
In response, Mr Kun said \u201cwe know that these are short-term challenges which we as responsible creditors remain committed to resolving\u201d and that \u201cthe long-standing and prosperous relationship between Ghana and China imposes on us, a responsibility to help\u201d.<\/p>\n
The Chinese Finance Minister further said it was the hope of his country that Multilateral and Commercial creditors would also fully participate in the interest of burden sharing.<\/p>\n
\u201cChinese authorities have confidence in Ghana\u2019s economic management, and its long-term economic viability,\u201d Mr Kun said.<\/p>\n
He added \u201cChina believes in promoting debt sustainability and sustainable development,\u201d<\/p>\n
He said these when Mr Ofori-Atta, led a high-level delegation from the ministry to China to engage in bilateral talks with his Chinese counterpart and other Chinese officials.<\/p>\n
By Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
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