Dr. Mohammed Amin Adam, the finance minister has confirmed the second Review of Ghana’s three-year, $3bn IMF-Supported Post Covid-19 Programme for Economic Growth (PC-PEG) to be conducted by the IMF Staff scheduled for the 2nd–12th April 2024.
The review follows the successful completion of the 1st Review of the Programme on 19th Jan 2024. Dr Adam said that during the Review, the International Monetary Fund (IMF) mission would engage the authorities in technical and policy discussions.
“This is to enable the IMF to assess Ghana’s performance on programme objectives, the six Quantitative Performance Criteria, the three Indicative Targets (ITs), one Monetary Policy Consultation Clause (MPCC), and the Structural Benchmarks (SBs) concerning the end of December 2023 targets. The IMF will also review performance towards upcoming QPCs, ITs, and SBs.”
Dr. Mohammed Amin Adam, Finance Minister
The Minister indicated that the approval of the second Review by the IMF Executive Board, possibly in June 2024, would trigger the release of the third tranche of $360 million, bringing the total disbursements so far under the programme to $1.56 billion.
Dr Adam noted that the Ministry was working with the Bank of Ghana (BoG) in preparation for the IMF 2nd Review Mission, adding that a preliminary assessment undertaken by the MoF and BoG showed that the country was on course to meet most of the targets under the Programme.
Dr Adam said the government would also fast-track the completion of the external debt restructuring programme; optimize the mobilisation of Domestic Revenue; and rein in expenditures through controls and rationalization.
He said the Government had received counterproposals on the debt treatment scenarios from the two bondholder groups and that in the coming weeks, the Government and advisors would start extensive discussions with bondholder representatives to advance restructuring engagements following the agreement with the Official Creditor Committee.
The finance minister further reiterated the commitment of the government to stay on course in the implementation of the IMF-Supported programme and the World Bank-supported Development Policy Operations despite 2024 being an election year.
“There will also be the implementation of the government’s growth strategy with a focus on improving SME productivity for growth and jobs, pursuing an inclusive approach to economic management through instituting: a Joint Economic Roundtable with the academia to discuss topical economic issues and a Ghana Development Forum (GDF) to bring various stakeholders together to discuss and build consensus on key interventions such as the IMF ECF Programme and Debt Restructuring Programme.”
Dr. Mohammed Amin Adam, Finance Minister
Additionally, Dr Adam said the macroeconomic environment continues to remain stable and signs of economic recovery were emerging as the Government implemented the IMF-supported PC-PEG.
The finance minister stated “this economic performance we are witnessing has been achieved through the cooperation and sacrifice of all Ghanaians. I take this opportunity to express the Government’s appreciation for the immense support.”
The macroeconomic environment in Ghana is reported to be stable, with signs of economic recovery emerging as the government implements the IMF-supported PC-PEG. Growth is proving to be more resilient and robust than initially programmed, with inflation on the decline and the exchange rate largely stabilized.
Gross International Reserves are improving, and external balances, including the current account balance and trade balance, continue to improve. Fiscal consolidation is holding, and the rate of accumulation of public debt is declining, following good progress in the debt restructuring program and the success of the fiscal consolidation agenda.
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