Minister for Finance, Ken Ofori-Atta, has said the formal negotiations for an International Monetary Fund (IMF) support programme which commenced on Monday 26 September 2022, will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement to be presented to Parliament in November.
“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” the Finance Minister Ken Ofori-Atta said when he addressed the media on Wednesday 28 September 2022.
Ofori-Atta further indicated that “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”.
Debt sustainability analysis
On the issues of sustainable debt, Ofori-Atta indicated that “on the commencement of the IMF negotiations, 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” the Finance Minister said.
“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” Ken Ofori-Atta added.
Historic arrangement
Ghana according to the Finance Minister “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” he said.
“Ghana has always had a collaborative approach with its partners and we shall, I am confident, come out with an ‘historic arrangement” Ofori-Atta added.
