Ghana heads to the IMF for a Balance of Payment Support Programme
The government, has finally heeded to calls by economic experts to go for an IMF programme in the face of the current economic challenges.
Ghana’s economy is saddled with unsustainable debt with the country classified as being at risk of high-debt distress by the World Bank.
This is coupled with inadequate tax revenue to finance expenditure and fiscal deficits.
Additionally, Ghana has been shown the exit door from the international capital market as it is now unable to borrow from the capital market.
This is due to the country’s sovereign rating being downgraded to CCC by Moody’s this year, the country’s worst credit rating in the last 20 years.
In a press statement released by the Ministry of Information, Minister for Information, Opong Nkrumah, stated President Akufo-Addo has authorized the Finance Minister, Ken Ofori-Atta to commence formal engagements with the IMF to support an economic programme put together by the government.
According to the press release, the engagement with the IMF will seek to provide balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the Covid pandemic and recently, the Russia-Ukraine crisis.
Balance of Payment [BoP] assistance takes the form of medium-term loans that are conditional on the implementation of policies designed to address underlying economic problems.
Read details of statement below:
Statement – Moi by Fuaad Dodoo on Scribd
