Ghana: IMF Resident Representative calls for full implementation of reforms in programme
Dr. Leandro Medina, the Resident Representative of the International Monetary Fund (IMF), has expressed confidence that Ghana’s economic crisis can be resolved by fully implementing the reforms outlined in the $3 billion support program. According to Dr. Medina, the program encompasses a comprehensive set of policies and reforms that are crucial for the country to attain economic freedom and overcome the current challenges.
Speaking in an interview, Dr. Medina emphasized the strength of the program and its potential to address the crisis while laying the foundation for sustainable and inclusive growth. He stated, “This program is very strong on the objectives and the policies and reforms that are needed. So again, if implemented as planned, this program will really help us not only dealing with the crisis but get out of the crisis and really lay the foundation, which is exactly what you are talking about, right? Then you can have more sustainable and long-lasting inclusive growth.”
Dr. Medina further explained that the program was designed to address the gaps in the economy, which may require revisions in certain aspects of the country’s expenditure. He emphasized the importance of social protection within the program, stating that during times of crisis, it is common to review overall expenditure and initiatives to make them more cost-efficient.
Ghana has already received $600 million as part of the support program, which the government intends to utilize for bolstering the Bank of Ghana’s reserves and providing budgetary support. However, concerns have been raised regarding whether the program will effectively resolve Ghana’s economic challenges and lead to sustainable recovery.
Addressing these concerns, Dr. Medina reiterated that the program takes into account all the necessary factors to stabilize the economy. He highlighted the Extended Credit Facility as a financial support program designed to assist countries facing difficulties and emphasized the catalytic role it plays in securing foreign aid and financing. Dr. Medina called for the involvement of development partners and other multilateral institutions to support Ghana’s economic recovery efforts.
While a successful conclusion of Ghana’s external debt restructuring is expected, the IMF clarifies that it does not automatically grant the country access to the international market. Over the past few months, Ghana has faced difficulties in borrowing from the international market due to its unsustainable debt levels and a lack of confidence from lenders.
President Akufo-Addo, in a recent statement, expressed optimism that Ghana would soon regain access to the international capital market with the IMF deal in place. He emphasized the importance of accessing funding to execute the government’s mandate and acknowledged the concerns surrounding the closure of the capital market to the country.
The implementation of the IMF-supported program and the successful restructuring of Ghana’s external debt are seen as crucial steps toward stabilizing the economy and regaining investor confidence. Ghana’s return to the international market would provide the much-needed financial resources to support the government’s developmental agenda and pave the way for sustained economic growth.
