The International Monetary Fund (IMF) has disclosed that there is a need for Ghana to secure financing assurances from its partners and creditors before the country can present its programme request to the Executive Board for approval.
The Fund was responding to a question at a news conference in Washington DC, U.S.A on the status of Ghana’s programme, following a recent statement by President Akufo-Addo that Ghana is working to submit its programme to the board by end this March 2023 for approval.
The IMF Director of Communications, Mrs. Julie Kozack, during the meeting noted that financing assurances from partners and creditors are necessary for presenting the programme request to the IMF’s Executive Board for approval.
According to her, whiles the IMF is engaging the Ghanaian Authorities on the progress made on its request, the Fund is also seeking the assurances from Ghana’s partners.
“We are calling on bilateral creditors to support Ghana’s effort to restore debt sustainability, form an official creditor committee, and deliver the necessary financing assurances as soon as possible.”
Mrs. Julie Kozack,
Government has indicated that it is working to present its economic programme by March ending 2023. The government is yet to meet all the pre-conditions needed before the programme can commence.
However, in meeting the March end deadline, there are reports that Ghana is likely not to get its programme approved by the end of March 2023. This is due to the fact that the processes needed to get the approval require a submission of reports to the Africa Office of the IMF before it goes to Washington DC. Some observers are hopeful Ghana may get its programme approved from the middle of May 2023.
Pre-Conditions IMF Outlined For Ghana To Secure A Bailout
On December 12, 2022 the IMF reached a staff level agreement with Ghana on a three-year programme supported by an arrangement under the Extended Credit Facility (ECF).
As part of the requirements, Ghana is expected to restructure its domestic debt and external debt and as well publish the Auditor General’s report on the Audit of COVID-19 spending undertaken from March 2020 to June 2022. This is expected to ensure transparency and accountability of the COVID-19 Emergency Spending.
Not limited to that, Ghana is also expected to implement an upfront weighted electricity tariff of 30 percent, excluding lifeline. This is aimed at reducing the current cost of recovery in the energy tariffs and power sector shortfalls.
IMF further expects the government of Ghana to pass a law that will ensure zero financing from the Bank of Ghana, including passing some three key revenue measures – which are the Income Tax Amendment Bill, the Excise Duty Amendment Bill and the Growth and Sustainability Amendment Bill.
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