Former Minister of Finance Seth Terkper, has disclosed that President-elect John Mahama's suggestions to renegotiate the International Monetary Fund (IMF) program will focus on resetting the economy to better address the nation's current challenges.

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“Our plans to re-negotiate have also been influenced by the current state of the economy and how the John Mahama administration wants to fast-track measures to fully stabilize the economy”, he said.Mr. Terkper shared this information on PM EXPRESS BUSINESS EDITION, hosted by George Wiafe, on December 12, 2024.He explained that the renegotiations will likely focus on the country’s Primary Balance and how it is accounted for.

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Additionally, he mentioned that the government will reassess the nation's debt and explore "smart borrowing" strategies to manage costly debts and other financial obligations.“When you look at the current debt situation and the expected payments from 2025, the incoming NDC government has to explore innovative ways to finance these debts”, he said.

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He stated that the review will also look at some of the key benchmarks under the programme and the fiscal consolidation measures being implemented.BackgroundPresident-elect John Mahama during a recent meeting with the United Nations Resident Coordinator Charles Abani revealed that his administration will press ahead to review Ghana’s Programme with the IMF and the World Bank.

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According to the President-elect, the review is to ensure that the programme is aligned with the country’s current needs.“This adjustment is crucial and will help put the new government that would be inaugurated next year on the same springboard with our development partners to begin the rebuilding of the economy and the country,” Mr Mahama stated.

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Ghana is currently under a 36-month, $3 billion Extended Credit Facility with the IMF and has also signed several agreements with the World Bank, including a $250 million Ghana Financial Stability Project and another $250 million for the Ghana Energy Sector Recovery Programme.

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Dealing with Investor concernsMr Terkper rejected the notion that the decision to go for a renegotiation could result in some negative investor reaction, a development that could hurt the economy badly.“We have done our engagements and are still engaging these investors on their concerns that will be factored in these re-negotiations”, he assured.

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Mr Terkper disclosed that the Mahama team has already engaged development partners on this issue, hence the country will not suffer as a result of the move.“This is one of the reasons why we are holding a National Consultative Forum on the Economy and all these concerns, including re-negotiating the IMF programme will be discussed as well”.

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President-elect Mahama has pledged to eliminate several taxes, including the E-levy, COVID Levy, 10 percent betting tax, and the Emissions Levy.According to JOYBUSINESS, the COVID-19 levy generates approximately GH₵13.91 million annually, the E-levy raises GH₵8.27 million, and the betting tax brings in around GH₵5.1 million.Mr.

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Terkper assured that the team has put in place strategies to manage potential shocks and minimize their negative effects on the economy.“We should not forget that all the taxes are put together. It’s about 5 percent of Ghana’s Gross Domestic Product and we can find alternatives to this. We are planning to make sure that the projects will be self-financing, this other will ensure that the economy will not suffer”, he said.

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