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

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

This is a little bit higher than the initial one billion dollar disclosed by the Finance Minister to the Bloomberg News in July 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 in terms of Economic Growth and Ghana’s drawing rights at the IMF.

Ghana’s domestic program

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

Mr. Ken Ofori-Atta revealed that government is optimistic of securing a program with the IMF next year , as it pushes to finalize work on its Enhance Domestic Program this summer.

Focus of Ghana’s Program with IMF

The IMF has indicated that the focus of Ghana’s program 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 Edition with Host, George Wiafe, the Finance Minister disclosed that “ Programs 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 program possibly, hopping that IMF program reforms will be completed in 2 years” the minister added.

Eurobond and IMF program

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 program quickly will also help restore investor confidence in the economy.

Revenue Mobilization 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 program to scrutinize all expenditure over the next five months. The minister maintained that his 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 been also revised downward to 135 billion cedis from the original budget projection of 137 billion cedis.

This will result in Fiscal Deficit on cash basis of 38 billion cedis , representing 6.6 of Revised GDP

Source: Joy Business