Ghana’s International Monetary Fund (IMF) program approval, according to the Finance Minister – Ken-Ofori Attah, is an initial step in putting the economy back on track.
This, he said, is a critical first step in the necessary road of robust reforms, inclusive growth, and unwavering pursuit of a growth agenda aimed at restoring Ghana’s economy to a position of strength, prosperity, and resilience.
The finance minister expressed appreciation to Ghanaians for their assistance and support in obtaining Board approval.
“I believe it is also right to first thank the people of Ghana, our bilateral and development partners, all our investors, and the IMF, for their commitment and the sacrifices that have made it possible for us to achieve an IMF Programme in record time.”
Mr. Ken Ofori-Attah
Mr. Ofori-Atta recalled that the government’s path to permanently turning around the economy had not been easy.
“It has not been an easy 10-month journey, but the impossible has been made possible through sheer grit and determination to put Ghana firmly back on a strong economic footing.”
Mr. Ken Ofori-Attah
He further emphasized that Ghana’s International Monetary Fund is to ensure social protection.
According to him, the programme will mitigate the impact of economic adjustment on the most vulnerable, whilst strengthening existing social intervention programmes such as Lively Empowerment Against Poverty (LEAP), National Health Insurance Scheme, Capitation Grant, School Feeding Programme, amongst others.
IMF Warns Against SOEs Adverse Impact On Fiscal Cost
Meanwhile, the International Monetary Fund has disclosed that State Owned Enterprises (SOEs) are imposing a direct fiscal cost to the central government and are a key source of fiscal risks, hence requesting for an amendment of Ghana’s Fiscal Responsibility Act.
According to the global lender, this reflects both inadequate institutional arrangements and unsustainable sectoral policies, noting that; “Problems are particularly acute in the energy and cocoa sectors.”
IMF further indicated that institutional frameworks for managing and monitoring SOEs will be modified in order to promote competition and efficiency.
“Audited SOE financial statements are to be submitted to the ministry of finance in a timely manner. Given the diversified nature of SOEs, strengthening the technical capacity of the State Interests and Governance Authority (SIGA) to evaluate sector-specific risks is crucial and already underway with technical assistance from the IMF”.
International Monetary Fund
More so, the global lender indicated that Fiscal Risk Statements will be released on a regular basis to improve openness and accountability by evaluating various macroeconomic and contingent liabilities risks and outlining a clear mitigation approach.
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