The IMF will send another team to Ghana in the coming weeks.
Following Ghana's request for a bailout, the International Monetary Fund (IMF) plans to send another mission there in the coming weeks. Gerry Rice, the IMF's Director of Communications, stated at a media event.
"In July, we had an IMF staff team in Accra to begin preliminary discussions with Ghanaian authorities." And we defined that mission as constructive, kicking off the process and laying the groundwork for ongoing engagement.
"Our IMF Mission Chief recently returned to Accra to meet with key counterparts." And we're hoping for another visit in the coming weeks, though I don't have a specific date for you," Gerry Rice revealed.
Ghana is requesting a $3 billion package from the fund to help stabilize its economy.
When the IMF team first arrived, they discovered that the country was in a difficult economic and social situation.
The IMF staff team, led by Carlo Sdralevich, visited Accra from July 6 to 13, 2022, to assess the current economic situation and discuss the broad contours of the government's Enhanced Domestic Program, which could be supported by an IMF lending arrangement.
The IMF team met with Vice President Dr Mahamudu Bawumia, Finance Minister Ken Ofori-Atta, and Bank of Ghana Governor Ernest Addison. The team also met with the Finance Committee of Parliament, civil society organizations, and development partners such as UNICEF and the World Bank to discuss social spending.
Mr. Sdralevich concluded the mission by saying, "Ghana is facing a challenging economic and social situation in an increasingly difficult global environment." Following the COVID-19 pandemic, the fiscal and debt situation has deteriorated dramatically. Simultaneously, investor concerns have resulted in credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
"Additionally, the global economic shock caused by Ukraine's war is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and has little room for maneuver." These negative developments have contributed to slower economic growth, an accumulation of unpaid bills, a significant depreciation of the currency, and an increase in inflation."
He revealed that "Initial discussions were held by the IMF team on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying short-term policy priorities. The discussions centered on improving fiscal balances while protecting the vulnerable and poor; ensuring the credibility of monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to boost growth, create jobs, and strengthen governance."
"IMF staff will continue to closely monitor the economic and social situation and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholder consultation," he said.
He reaffirmed the IMF's commitment to assisting Ghana during this difficult period, in accordance with the IMF's policies.
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