The Mahama administration may request additional financial support from the International Monetary Fund (IMF) under its ongoing three-year programme to strengthen the economy.Finance Minister-designate Dr. Cassiel Ato Forson revealed this on Thursday.

0

President John Mahama, who was inaugurated this week after defeating the ruling party’s candidate in the December elections, has appointed the former minority leader in Parliament to take on the crucial role of Finance Minister.

1

"We are committed to work with the IMF, but we also want to ensure that we can raise financing; additional finance, working with IMF and other domestic, international partners," Forson, told reporters, ahead of a meeting with an IMF team that is currently visiting Accra."The reliance on Treasury bills and others has not been very helpful," said Forson, who also served as a deputy finance minister before.

2

The IMF has yet to respond to requests for comment.Dr. Cassiel Ato Forson, 46, a chartered accountant with a master’s degree in taxation from Oxford and a doctorate in finance from a local university, stated that the new government plans to reduce public spending as part of efforts to bring down inflation.

3

"There is a lot of wastage in the system and we will cut them," he said, adding that the move will also help the government to restart domestic bond issuance by mid-year.Ghana, a major producer of gold and cocoa in West Africa, defaulted on most of its external debt in 2022, resulting in a difficult restructuring process that is now nearing completion.

Minister-designate Dr. Cassiel Ato Forson

4

stated that Mahama's administration plans to finalize the process by reaching an agreement with the country’s non-Eurobond commercial creditors.REVISITING IMF DEALPresident John Mahama, who previously served as Ghana's leader from 2012 to 2017, had promised during his campaign to renegotiate the terms of Ghana's bailout deal with the IMF.

5

However, many market analysts believe he has little flexibility and is unlikely to abandon the current IMF programme despite his campaign statements.His pledge is similar to promises made by other reformist leaders elected last year in emerging markets, such as Sri Lanka's Anura Kumara Dissanayake, who also vowed to revisit the terms of an IMF programme and debt restructuring.

6

Mahama has committed to quickly forming a government capable of addressing public dissatisfaction by strengthening the economy and creating more job opportunities.

7