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The International Monetary Fund (IMF) is advising Ghana to stay committed to its fund program to ensure the nation fully benefits from the ongoing rescue package.
After the disbursement of the second tranche amounting to $600 million, the Fund insists on the effective implementation of structural reforms. This call comes at a time when the government is contemplating consulting with the IMF to address the anticipated revenue shortfall resulting from the proposed suspension of the electricity VAT.
To navigate the economic crisis successfully, the IMF mandates that Ghana adheres to the agreed-upon austerity measures. Abebe Selassie, Director of the African Department at the IMF, emphasized the importance of Ghana continuing to implement the program as envisioned over the next three years.
The Bank of Ghana received the second tranche of $600 million for budget support and local currency stabilization in late January, bringing the total amount granted under the three-year extended credit facility in May 2022 to $1.2 billion.
According to the IMF, Ghana is making progress under the program, with reforms yielding positive results and signs of economic stabilization becoming evident.
Abebe Selassie stated, “Ghana’s program is being implemented effectively,” highlighting the recent board review following the government’s policies to address imbalances faced in the previous year. Official creditors are signaling their commitment to providing debt relief in line with Ghana’s needs.
The third tranche of Ghana’s IMF program, valued at approximately $360 million, is set to undergo review in June 2024.
Source:Omanghana.com
