Goldman Sachs expresses concern over Gov’t’s “lack of urgency” in closing IMF deal
Goldman Sachs has raised concerns about what it describes as “perceived lack of urgency” by government in closing a deal with the IMF.
According to the US investment bank, the issue came up during their recent visit with the IMF to Ghana to engage with authorities on the status of a programme.
“One notable observation was the authorities’ perceived lack of urgency in concluding a programme talks with the IMF”, Goldman Sachs said.
Goldman Sachs is worried that despite the depleting balance of payment, weak cedi and the fiscal financing pressures experienced by the country, government is not pushed to fast track the discussions.
The investment bank in its report to investors warned that this might come with some serious consequences for the economy going forward if a deal is not closed soon.
It also argued that the “ delayed conclusion creates the risk of further deficit monetisation by the BoG, Cedi depreciation and a decline in FX reserves, implying that the macroeconomic outlook may deteriorate further in the near term”.
Goldman Sachs was however quick to add that the concerns namely, currency pressure and the inability to finance the deficit — may serve to increase the sense of urgency and ultimately prompt the authorities to accelerate IMF talks.
Meanwhile, the Finance Minister, Ken Ofori-Atta, in a recent interview expressed government’s commitment to an IMF programme asserting discussions are being fast tracked.
