$600 million out of the approved 3 billion International Monetary Fund (IMF) bailout programme is expected to hit the Bank of Ghana today.
The International Monetary Fund’s executive board on Wednesday approved a $3 billion, three-year loan program for Ghana to boost economic stability.
The IMF said in a statement that securing timely debt restructuring agreements with external creditors would be essential to successfully implement the Extended Credit Facility loan aimed at helping Ghana overcome immediate policy and financing challenges.
The finance minister, Ken Ofori Atta indicated that Ghana is borrowing to bring down its Gross Domestic Product (GDP) rate to 55% debt ratio.
“That program will hold really in addition to the revenue measures that we saw in the budget. And that is improving our GRA. That will give us the resources to move forward curtailing and managing our expenditures are going to be important,” he said during a joint Bank of Ghana /IMF joint news conference on Thursday, May 18, 2023.
He said there is no rush to return to the International Capital Market.
“Our expectation is that in managing our expenditure and increasing our revenue, we’ll have the resources to do it. Working towards the capital market is important because we get our ratings up and make a country more attractive for foreign investors, especially FDI. But rest assured that no one is rushing to the international capital markets at this juncture”.
Ghana, like many nations worldwide, faced significant economic setbacks due to the global pandemic.
The pandemic’s adverse effects on various sectors, including tourism, manufacturing, and trade, necessitated external assistance to navigate the challenges and promote a robust recovery.
The IMF Mission Chief, Ghana, Stephane Roudet emphasized that IMF is a more reformed program to rebuild an economy.
She explained that the program is focused on restoring macroeconomic stability and anchoring debt sustainability, adding that it will also create the foundations for higher and more inclusive growth.
“I think that’s very important because this will set the stage for a much brighter future for all Ghanaians. I think it’s important to emphasize also that this is a program that is very rich in its structural component. It includes many reforms that cover a large range of sectors, and these reforms will make the economy more resilient to shocks in the future. And this is what really government and the IMF are looking for in this program,” she said.
On his part, the Bank of Ghana Governor, Dr. Ernest Addison said that the Bank of Ghana will provide liquidity support to banks.
He reiterated that the Bank of Ghana stands ready to provide liquidity for any banks that may have future liquidity issues.
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Source: Enock Chanimbe/ATLFMNEWS
