IMF negotiations to reflect in 2023 budget – Finance Minister
Formal negotiations with the International Monetary Fund (IMF) for a Balance of Payment support programme, the Minister for Finance Ken Ofori-Atta, has said will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Budget Statement.
The 2023 Budget Statement is expected to be presented to Parliament in November this year.
Making the assertion during a press briefing at the Finance Ministry on Wednesday, September 28, Mr Ofori-Atta said, “The formal negotiations for a Fund-supported programme began on Monday September 26th, 2022 and discussions are advancing smoothly.
“The IMF Mission will cover a period of 10 days; and in line with the president’s dialogue with the IMF managing director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022”
“Government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection,” he added.
On the issues of sustainable debt, Mr Ofori-Atta indicated that, “Having a sustainable debt path is a pre-requisite for the IMF programme. Therefore, the IMF/World Bank and the Ghana Team are currently undertaking a debt sustainability analysis (DSA) to inform the programme negotiations”.
“In addition, the IMF and government team are working to update the medium-term macro-fiscal framework to inform IMF programme design.
“Also, the government Team and the IMF Team are discussing policy measures and structural reforms proposed in our 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”.
Further stating that, “We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis.
“Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process.”
According to the Finance Minister, “Ghana needs a viable domestic financial system to support its development programme, especially in these three years with limited access to the International Capital Market”.
“Therefore, everything must, and will be done, to protect our financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both our domestic and external investors.
“Ghana has always had a collaborative approach with its partners and we shall, I am confident, come out with an ‘historic arrangement”, Mr Ofori-Atta added.
