Skip to main content

Finance Minister revises IMF financial package under programme to $3 billion


Finance Minister, Ken Ofori-Atta has revealed that Ghana could get about $3 billion from the International Monetary Fund (IMF) under the programme.

This is higher than the initial one billion dollars disclosed by the Finance Minister to Bloomberg News in July 2022 when the IMF team paid a visit to Accra as part of their economic data gathering exercise.

According to the Finance Minister, the revised projection has been influenced by recent developments in the economy regarding economic growth and Ghana’s drawing rights at the IMF.

 Ghana’s domestic programme

The Finance Minister has also disclosed that Government is hoping to complete work on its Enhanced Domestic Programme by the end of September this year, which will form the basis for negotiating a programme with IMF .

Ken Ofori-Atta revealed that government is optimistic of securing a programme with the IMF next year, as it pushes to finalise work on its Enhanced Domestic Programme this summer.

Focus of Ghana’s Programme with IMF

The IMF has indicated that the focus of Ghana’s programme with the Fund, will look at Debt Sustainability and how to restore Macro-Economic Stability and Support the credibility of government policies, as well as restore confidence in Central Bank’s ability to manage Inflation.

But speaking on PM EXPRESS BUSINES, the Finance Minister disclosed  that “programmes usually take about six months to be negotiated, but discussions for Balance of Payment support has already started. 

We are thinking of a three-year programme possibly, hopping that IMF programme reforms will be completed in 2 years” the Minister added.

Eurobond and IMF programme

The Minister also disclosed that, they will be tapping into the Eurobond Market, after Ghana is able to close a deal with the IMF. This will make up the funding shortfalls for the country.  

The minister also revealed that closing the IMF programme quickly will also help restore investor confidence in the economy.

Revenue mobilisation and checking fiscal slippage

Government over the years has struggled in hitting its revenue target and checking Budget overruns, but Mr. Ofori-Atta has assured that government is hoping to rely heavily on the GIFMIS programme to scrutinize all expenditure over the next five months.

The Minister maintained that this will help restore confidence in the economy as government takes some of the fiscal measures for the next five months.

Government has revised the Total Revenue as well as expected money grants.

Total Expenditure, (Including Payments for the clearance of arrears) has also been revised downward to  ¢135 billion, from the original projection of ¢137 billion cedis.

This will result in fiscal deficit on cash basis of ¢38 billion, representing 6.6% of the revised GDP.

Labels:

Comments

Post a Comment

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...
Post a Comment
Read more

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...
Post a Comment
Read more

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...
Post a Comment
Read more