The World Bank has restated its commitment to advance almost $1 billion to Ghana if the country secures an International Monetary Fund (IMF) programme.
This, as stated by Ghana’s finance minister – Mr. Ken Ofori-Attah, is separate from the $3 billion that is expected to support Ghana’s Balance of Payment from the IMF under the Fund programme.
According to the finance minister, the expected financial support from the World Bank will be spread over the next three years under the programme.
He added that the funds will be advanced towards some projects and initiatives identified in the 2023 Budget.
“Other donor partners are expected to come on board in terms of providing the required financial assistance to support Ghana’s recovery under the IMF programme.”
Mr. Ken Ofori-Attah
Commenting on the status of Ghana’s IMF programme request, Mr. Ofori-Atta disclosed that Ghana has met all the pre-conditions, hence, government will get a programme with the IMF.
The Managing Director of the IMF, Kristalina Georgieva has already stated that the Fund will quickly approve the deal when all the necessary requirements are met.
“What the IMF is looking forward to before it can go to its board for Ghana’s programme approval is the assurance from the Paris Club of Bilateral Creditors. That group is committed to extending the needed financing support.”
Mrs. Kristalina Georgieva
Proposed Tax Measures, Fiscal Discipline And Stability Fund For The Financial Sector Post DDEP
Speaking on fiscal discipline, the finance minister has assured that his team, together with government will strictly enforce fiscal measures under the IMF programme.
He promised to act differently going forward, looking at the challenges that Ghanaian economy has gone through.
“This is what we need to do to help the IMF programme succeed and prevent any derailment going forward.”
Mr. Ken Ofori- Attah
Not limited to that, Mr. Ofori-Attah has justified recent tax measures instituted by the Ghana Revenue Authority to improve revenue mobilization, pointing out that there are many businesses not paying taxes and under declaring their earnings.
“Recent Ghana Revenue Authority audit and exercise have shown that there are a lot of businesses that are not paying taxes. Some are even under declaring earnings as well to reduce the taxes that they owe to the state, and we think that this must stop.”
Mr. Ken Ofori-Attah
He noted that government will do its best to ensure that the taxes are well utilized to turn around the economy and embark on programmes that will help reduce the cost of doing business in the country.
“We should understand that the economy is in trouble and the necessary measures should be taken to help stabilize the situation.”
Mr. Ken Ofori-Attah
He however admitted that government may not meet the projected revenue target from the taxes due to the delay in passing the law.
He also disclosed that the $1.5 billion Ghana Financial Stability Fund would be operational from July 2023 to support financial institutions that have been hit by the Domestic Debt Exchange Programme.
According to Mr. Ken Ofori-Attah, the World Bank is expected to give Ghana about $250 million by June this year, as well as the African Development Bank.
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