John Dramani Mahama, a former president, has urged the administration to make sure that it strikes a deal with the IMF (IMF).

He added that because the country's economic hardship had grown intolerable, a financial bailout from the Bretton Woods organisation was required.

John Dramani Mahama said in a tweet seen by GhanaWeb that an IMF agreement may stabilize the sputtering economy.

“Distressing! Every passing day makes our economic situation worse. Gov’t must work with greater alacrity to lock in a programme with the Fund in order to create a more predictable economic outlook,” the former president wrote on the micro-blogging site.

On October 3, 2022, international rating firm, Moody's Investors Service downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa2 from Caa1.

According to Moody’s, the downgrade reflects the recent macroeconomic deterioration of Ghana's economy which resulted in further heightening of government’s liquidity, debt sustainability difficulties and posing an increased risk of debt default.

It however explained that the initiation of the review for downgrade is prompted by the ongoing negotiations between the government of Ghana and the IMF over a funding programme that may include a condition for debt restructuring to ensure debt sustainability.

It would be recalled that in June this year, government engaged the International Monetary Fund for a financial bailout amidst the economic challenges.

Subsequently, a team from the IMF arrived in the country from July 6 to July 13, 2022, to engage Ghanaian authorities for a possible economic support programme

The IMF programme, government said, is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

Meanwhile, Ghana is targeting an amount of $3 billion over three years from the IMF once an agreement on a programme is reached.

The new amount requested as a loan is double the government’s initial target of $1.5 billion.