The International Monetary Fund (IMF) has announced that its economic programme with Ghana will focus heavily on debt sustainability.
This was captured in a Question and Answer statement issued by the IMF as it begins deliberations with the Government of Ghana on an Economic Programme aimed at stabilising Ghana’s economy.
The IMF also added that the programme will support the credibility of government policies, restore confidence in the central bank’s ability to manage inflation and accumulate foreign exchange reserves to help the local currency withstand headwinds.
On the Fiscal sector, the IMF noted that an important policy objective would be to increase revenues, critical for debt sustainability while safeguarding spending on health, education, and social protection.
Government negotiations for IMF programme
Government is set to formally open negotiations with the IMF from 26/9/2022 as issues about Ghana’s rising debt stock and fiscal status is set to dominate the discussions.
This was after government made a request to the IMF for some financial support for its Enhance Domestic Programme, aimed at dealing with the current challenges facing the economy.
The engagement which will last for about two weeks is expected to end on October 7, 2022.