According to the finance minister, the planned three-year loan is anticipated to receive IMF board approval early in 2019.
A $3 billion loan from the International Monetary Fund (IMF) was approved for Ghana in order to reduce its debt, reestablish financial stability, and assist those who are at risk from rising costs and other economic difficulties.
Since the beginning of the year, rising inflation and debt have caused a rapid decline in the value of the Ghanaian cedi.
IMF representatives examined policy and reform proposals with authorities this month in Accra.
Ghana is “committed to the programme and will strive towards satisfying the demands,” according to finance minister Ken Ofori-Atta, who made the statement at a news conference on Tuesday. He said that the deal will strengthen the currency, combat price spikes, and contribute in the restoration of economic stability.
“We hope this is the last [help needed], please.” The program will be so effective because of this, he claimed.
“The Ghanaian authorities have committed to a wide-ranging economic reform programme, which builds on the government’s Post-COVID-19 Programme for Economic Growth (PC-PEG) and tackles the deep challenges facing the country,” said Stephane Roudet, head of the IMF’s mission to Ghana, in a statement on Monday.
READ ALSO: This Is How Much Wizkid Charged For His Show In Ghana
According to him, Ghana’s reforms are aimed at strengthening public finances while safeguarding the weak. A medium-term revenue strategy will be developed, along with improvements to tax compliance, financial transparency, and the management of public industries.
A debt restructuring plan was also unveiled by Ghana, who also “committed to boosting social safety nets, including extending the existing targeted cash-transfer programme for needy households and improving the coverage and effectiveness of social spending,” according to Roudet.
According to the IMF, the objective is to provide a solid platform for increased growth while restoring economic stability and debt sustainability.
The three-year deal, which would fall under a program offering financial help to nations with balance-of-payments concerns, still needs to be approved by IMF management and board members. The IMF statement stated that Ghana’s allies and creditors must likewise admit receiving finance guarantees.
According to Trading Economics, a provider of international economic information, inflation surpassed 40% in October, reaching its highest level since July 2001 and above the central bank’s goal range of 6–10%. According to the firm, prices increased by more than 10% for non-food items and by more than 5% for food.
The Bank of Ghana has been working on monetary policy and exchange rate flexibility, and the government has started a domestic debt exchange, according to the IMF. These goals include lowering inflation, strengthening market confidence, and making it easier for Ghana to handle external shocks.
