Prof Bokpin warns of risks, complacency ahead of Ghana’s third review of IMF programme
Professor Godfred Alufar Bokpin, an economist, has cautioned the Government against complacency as it prepares for the third review of the IMF programme.
He emphasized the importance of vigilance, particularly since this review will occur towards the end of the year, coinciding with the peak election season, a period he identified as high-risk.
According to Professor Bokpin, historical patterns show that governments often do not prioritize IMF reviews that coincide with presidential election cycles.
He urged the Government to adhere strictly to structural benchmarks for the third review, including maintaining fiscal responsibilities and implementing policies to curb excessive expenditure.
“The third review, which will happen towards the latter part of this year and coincide with the peak election season, is where the risk lies; that’s where Government needs to focus its attention,” he warned.
Commenting on Ghana’s recent MoU agreement with Official Creditors, Professor Bokpin described it as a “major breakthrough” in the country’s debt restructuring efforts.
“From all indications, the MoU would be finalized by the end of this month, and the IMF Executive Board would approve the second review, which would lead to the release of the third tranche of $360 million. It’s good news, but that’s not what will solve all the problems we have,” he stated.
On Ghana securing the MoU agreement with Official Creditors, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has stated that the MoU agreement will significantly aid in securing approval of the country’s $360 million third tranche funding from the IMF.
In a social media post on Wednesday, Ms Georgieva congratulated Ghana on reaching the agreement, noting, “This will support the IMF Executive Board’s consideration of the programme’s second review later this month.”
Ghana’s MoU on debt agreement with Official Creditors follows the country’s goal to restructure approximately $13 billion in external debt. The MoU hence, represents a significant step towards restoring Ghana’s long-term debt sustainability.
Dr. Mohammed Amin Adam, Ghana’s Minister of Finance, has also emphasized that this agreement would strengthen ongoing negotiations with private creditors to secure a comparable debt agreement soon.
“This landmark agreement marks an extraordinary milestone in Ghana’s debt restructuring journey and will further strengthen our ambitious reform agenda with the strong support of our development partners,” he remarked.
