Ghana, according to Finance Minister Ken Ofori-Atta, could receive $3 billion from the International Monetary Fund (IMF).
This is more than the initial one billion dollars disclosed to Bloomberg News by the Finance Minister in July 2022, when the IMF team visited Accra as part of their economic data gathering exercise.
Ghana’s domestic policy
The Finance Minister also stated that the government hopes to complete work on its Enhanced Domestic Programme by the end of September this year, which will serve as the foundation for negotiations with the IMF.
According to the Finance Minister, the revised projection has been influenced by recent economic developments in terms of economic growth and Ghana’s IMF drawing rights.
Mr. Ken Ofori-Atta revealed that the government is optimistic about securing an IMF program next year, as it works to complete work on its Enhanced Domestic Programme this summer.
The focus of Ghana’s IMF program
The IMF has stated that the focus of Ghana’s program with the Fund will be on debt sustainability and how to restore macroeconomic stability, as well as how to support the credibility of government policies and restore confidence in the Central Bank’s ability to manage inflation.
However, in an interview with George Wiafe on PM EXPRESS BUSINES Edition, the Finance Minister stated that “programs usually take about six months to negotiate, but discussions for Balance of Payment support have already begun.”
“We are considering a three-year program, with the hope that IMF program reforms will be completed in two years,” the Minister added.
Eurobonds and the IMF’s program
The Minister also stated that once Ghana is able to reach an agreement with the IMF, they will enter the Eurobond market. This will cover the country’s funding shortfalls.
The minister also stated that completing the IMF program as soon as possible will help restore investor confidence in the economy.
Increasing revenue and preventing fiscal slippage
Over the years, the government has struggled to meet its revenue targets and control budget overruns, but Mr. Ofori-Atta has assured that the government hopes to heavily rely on the GIFMIS program to scrutinize all expenditure over the next five months.
The Minister maintained that this will help restore economic confidence as the government implements some fiscal measures over the next five months.
The government has revised both the total revenue and the expected money grants.
Total Expenditure (Including Payments for Arrears Clearance) has also been reduced to 135 billion cedis from the original projection of 137 billion cedis.
As a result, the fiscal deficit on a cash basis will be 38 billion, or 6.6% of revised GDP.