The International Monetary Fund (IMF) has stressed the importance of Ghana remaining committed to the relief program in order to reap its full benefits.
The Bretton Woods Institute emphasized the need for effective implementation of structural reforms, especially after the disbursement of the second tranche of $600 million to the government.
However, Ghana will need to approach the IMF to reach an agreement on the expected revenue shortfall due to the planned suspension of VAT on electricity, which is strongly opposed by the Trades Union Congress (TUC).
Nevertheless, the IMF’s Africa Director, Abebe Selassie, stressed the need for strict compliance with the agreed austerity measures to help Ghana emerge from the economic crisis.
These measures are essential to Ghana’s economic prosperity, said Selassie, who spoke in a webinar from Washington DC on February 5.
βWhat I can say is that going forward it is very important that Ghana continues to implement the program that was developed as envisioned. That is really important.
“These programs are designed to be implemented over three to four years. And it is important that Ghana stays on this course and ensures that the programs are implemented over the next three years,” he said. said.
However, Mr. Selassie noted that Ghana is showing positive results within the program, with reforms bearing fruit and signs of economic stabilization evident.
βGhanaβs program is being effectively implemented. I just went to a meeting.
βAnd, of course, the official creditors have indicated that they will provide debt relief in accordance with Ghana’s needs. So we just went to the board a few weeks ago. “We look forward to continuing to support the organization,” he added.
In late January, the Bank of Ghana confirmed receipt of a second tranche of $600 million for budget support and currency stabilization, approved under a three-year extended credit facility granted in May. Of the $3 billion, total expenditures were $1.2 billion. 2022.
The next review of Ghana’s IMF program is scheduled for June 2024 and aims to secure a third tranche of approximately $360 million.
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