August 10, 2022

PRIMA NEWS

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Ghana’s Economy: Gov’t announces talks with IMF 

2 min read

The Government is set to initiate talks with the International Monetary Fund (IMF) for a bailout following severe challenges to Ghana’s economy.

A statement signed by Mr Kojo Oppong Nkrumah, the Information Minister, said: “The President of the Republic, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister Ken Ofori-Atta to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic program put together by the Government of Ghana.

“This follows a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgievs, conveying Ghana’s decision to engage with the Fund,” the statement noted.

According to the statement, the decision was taken at a meeting on June 30, 2022.

It said: “The engagement with the IMF will seek to provide a 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-19 pandemic and, recently, the Russia Ukraine crises.”

Ghana’s economy is currently in an alarming crisis with worsening public debt, rising inflation, fuel prices, and cedi depreciation, among others.

Recent data released by the Bank of Ghana put Ghana’s total public debt stock, as of March 2022, at US$ 55.1 billion (GH¢391.9 billion).

In dollar terms, the debt dropped by over $3 billion in the first 3 months of the year, from $58.4 billion in January to $55.1 billion in March.

Several undertakings by the Government, including the introduction of the Electronic Transfer Levy (E-levy) to shore up enough revenue to save the worsening economic conditions had not yielded any positive results.

Source: GNA

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