The International Monetary Fund (IMF) team has concluded its discussions with government on policies and reforms that could be supported by a fund lending arrangement.

The team, led by by Stéphane Roudet, Mission Chief for Ghana, arrived in Accra on September 26, 2022.

In an earlier press statement, the IMF team said the visit will include engagements with other stakeholders such as the Bank of Ghana, Parliament, business associations and civil society groups.

Roudet, Mission Chief for Ghana

At the conclusion of the latest visit, Mr. Roudet in a statement said, “key areas of focus included ensuring public finance sustainability while protecting the vulnerable, bolstering the credibility of monetary and exchange rate policies to reduce inflation and rebuild external buffers, preserving financial sector stability, and steps to encourage private investment and growth, including by improving governance, transparency, and public sector efficiency.”

According to him, “The team will return to Washington, D.C. to advance its technical work. This includes making further progress on assessing Ghana’s debt sustainability. The discussions with the authorities will also continue in the weeks ahead, including during the upcoming Annual Meetings that will be convened at IMF headquarters.”

Ghana is looking at a sustainable debt path, which is one of the requirements for an IMF programme.

The IMF/World Bank and the government are undertaking a debt sustainability analysis (DSA) to inform the programme negotiations.

This means that a conclusion has not been drawn on the framework of any debt operations.

From January to July this year, Ghana’s overall fiscal deficit amounted to GH¢31.1 billion, which is 5.3% of the Gross Domestic Product (GDP).

As of August, the country’s inflation stood at an all-time high of 33.9%. The Ghana cedi has depreciated by 37.1% against the US dollar as of September 27th, 2022.

Also, the Fund and the government are now reviewing the country’s medium-term macro-fiscal framework. This is looking at a three-year expenditure plan which sets out the medium-term expenditure priorities and budget constraints, as well as focuses on sectors that need to be developed and refined.

According to the Finance Minister, both factions are discussing policy measures and structural reforms proposed in the economic programme aimed at “addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection.”

As government irons out issues with the Fund, the Finance Ministry has announced that it will set up a 5-member committee which will consist of prominent financial service professionals to engage key stakeholders in the financial services sector, in addition to ongoing engagements with Civil Society Organizations (CSOs), social partners (labour unions, employers, and FBOs), academia, industry professionals, and the leadership of Parliament.

The list of members of the committee will be released in the coming days, the Finance Minister has assured.

Government has made it known that it seeks to be transparent in its engagement with the IMF, therefore, the Finance Ministry is contemplating a weekly report.