The Ghana Employers' Association (GEA) has supported the government's decision to approach the International Monetary Fund (IMF) for assistance in resolving the nation's economic problems.

This is related to the current discussion surrounding the action, which has been criticized by a number of organizations, including the Trade Union Congress (TUC), who called it a "tragic blunder and stupid judgment."

But according to Dan Acheampong, president of the GEA, an IMF program was currently required to give policy the urgently required credibility, to restore stability and confidence in the Ghanaian economy, and to lower perceived risk and worries held by employers and investors.

“It is envisaged that the IMF intervention, by way of balance of payments support, will create some fiscal space for Government to pursue relevant short-term policies to return the economy to the path of fiscal consolidation and debt sustainability,” MrAcheampong said.

He made the call at the 62nd Annual General Meeting of the GEA, in Accra, yesterday, on the theme: “Sustaining businesses in the midst of macro-economic challenges.”

In view of current challenges, Mr Acheampong said, the Enhanced Domestic Programme that would form the basis of the engagement with the Fund, should focus on fiscal consolidation, restoration of debt sustainability, robust monetary and financial sector policies as well as prudent exchange rate management measures.

Mr Acheampong said, in order to augment fiscal consolidation, the GEA was entreating the government to speed up the implementation of the tax Exemption Bill, which had just been passed by Parliament, to render efficient and effective tax exemption management.

He recommended that the benchmark value policy be reviewed to cover imported goods that were not produced locally, and a sunset clause provided for goods produced locally, but not in sufficient quantities while efficiently implementing enduring import substitution policies for the same.

The GEA President further advised the government to review and streamline the flagship programmes, to make them achieve their intended objectives without any significant fiscal pressure, adding that “We believe that this will create some fiscal space for Central Government to operate.”

The Deputy Minister of Employment and Labour Relations, Bright Wireko-Brobbey, reiterated the need for dialogue in resolving labour disputes without disrupting the processes of production and jeopardising the stability of the industry in the face of the current challenges.

The Ministry of Employment and Labour Relations, she said, would continue to promote the principles of dialogue, enforce the provisions of the existing labour laws and regulations, protect the rights of workers and employers as well and promote safety nets for employers and workers.

Additionally, he said, the ministry would engage key government institutions, including the Ministry of Finance and Ministry of Trade and Industry the creation of enabling business environment for macroeconomic stability.

The greatest course of action in these trying economic times, said Mr. Wireko-Brobbey, is to "continue to engage each other and share information among ourselves so that we may find a durable solution together."

The managing director of Absa Bank Ghana, Abena Osei-Poku, recommended companies to develop a continuity strategy in order to be prepared for present and future issues.

She advised employers to encourage and support workers by informing them of the state of the economy and how it affects their support.