IMF aimed to safeguard the weak and stabilize the economy, according to the mission chief

The first round of discussions between the government and the IMF to finalize a fund-assisted program to stabilize the economy, re-anchor growth, and shield the vulnerable from economic problems has come to an end. The discussions began on September 26, 2022, and they were finished on Friday. Stéphane Roudet, the IMF’s mission chief in Ghana, served as the team’s leader. “We reiterate our commitment to help Ghana in these trying circumstances, keeping with the IMF’s objectives,” Mr. Roudet said in a statement.

Focused on

The IMF hailed the conversations as positive and noted that they centered on measures to provide the groundwork for a stronger and more inclusive growth as well as policies to restore macroeconomic stability. Key areas of concentration, according to the report, should be on safeguarding the weak while ensuring public finances are sustainable, preserving financial sector stability, and boosting the legitimacy of monetary and exchange rate policies to lower inflation and rebuild external buffers. It stated that the team looked at ways to promote private investment and growth, particularly by enhancing public sector efficiency, openness, and governance.

Program Requirement

In response to a worsening of macroprudential indicators, such as rising inflation, a declining cedi, and rising public debt, Ghana sought a fund-assisted program in July. The World Bank predicts that by December 2021, all economic activity would be engulfed in public debt, despite the fact that inflation and the cedi’s devaluation ended September at 33.9% and around 37%, respectively. The debt to GDP ratio will peak at 104%, according to the bank’s Africa Pulse report, which was published this week.

Debt Evaluation

The IMF Mission highlighted that a debt sustainability review was in progress in its statement. To enhance its technological work, it was stated that the crew will travel back to Washington, D.C. The conversations with the authorities will also continue in the coming weeks, including during the next Annual Meetings that will be held at IMF headquarters, according to the statement. “This includes making more progress on analyzing Ghana’s debt sustainability.

Individuals came into contact

According to the announcement, members of the IMF staff met with the teams of President Akufo-Addo, Vice President Bawumia, Finance Minister Ken Ofori-Atta, and Bank of Ghana Governor Dr. Ernest Addison. According to the report, the IMF team also met with members of the Parliament’s Finance Committee as well as those from other government departments, the Trades Union Congress, the commercial sector, civil society organizations, and development partners. Additionally, it expressed the staff’s appreciation for the authorities’, business sector’s, civil society’s, development partners’, and other stakeholders’ helpful participation and assistance during these conversations.