The much anticipated International Monetary Fund(IMF) bailout is not likely to start in January 2015 as expected, a member of the Finance Committee of Parliament,Dr. Mark Assibey Yeboah has revealed.
According to him, the IMF and government have not concluded negotiations and will return to Ghana in February for final talks.
[contextly_sidebar id=”31QHQ8s9wfiIxVOvQZ6iOy0froq3wSUO”]This came to light when officials from the IMF met the Parliamentary Select Committee on Finance on Thursday.
Ghana is in talks with the IMF for a bailout out programme to bring the country’s economy back on track.
The programme was expected to roll-out from January 2015 and run for about three years.
But Mr. Assibey stated that : “it is not likely that the programme or the fund will start anytime soon. Negotiations have not ended, they are going back tomorrow. They will not come back until sometime in February. In April, the IMF board will meet, and so in all likelihood if there is going to be a programme, it will start in May next year.”
The IMF has already predicted a gloomy outlook by the end of 2014.
It said, growth will decelerate to 4 ½ percent, from the 7.1 percent in 2013, and the year will end with an average inflation of around 15 percent.
The external current account deficit is projected to narrow to 10 percent of GDP, as imports declined substantially due to slower growth and a large depreciation of the currency, while export performance remained weak.
Ommission of IMF discussions in 2015 budget
As the Finance Minister, Mr. Seth Terkper presents the 2015 budget today, the Minority in Parliament has cautioned him against publishing the 2015 budget without the implications of the bailout programme with the IMF.
The Minority spokesperson on Finance, Dr. Anthony Akoto-Osei said government will be wasting the time of Parliament if it presents details of its discussions with the IMF to the House at a later date.
By: Marian Efe Ansah/citifmonline.com/Ghana