An IMF mission is set to visit Ghana this week for a possible third review of the 940 million fund programme signed with the country.
The third review comes after the IMF expressed satisfaction in its second review in January, and approved 114 million dollars for Ghana.
The mission as part of their visit will expect government to stabilize some macro indicators, while it works on cutting down on the central bank’s financing of the budget deficit.
The Director of African Department , Madam Antoinette Sayeh, who disclosed this in a press conference at Washington DC, USA; stated that the board is encouraged by Ghana’s effort to stick with the targets under the program to attain fiscal stability.
“We are encouraged by the fact that the government has made quite an effort to stick with the targets under the program and the fiscal is on track”, she said adding that “one of the objectives of the program in is to help the government contain and reduce debt through performance in increasing the primary fiscal balance”,
According to her, the programme aims at limiting the need for financing through debt—whether domestic or foreign.
“Ghana is making progress in that regard. Of course, people see the fact of the financing last year that was done in the form of the sovereign bond issue and the expense of that is something that undermines debt sustainability”, she pointed out.
Ghana signed up for the IMF programme in April 2015 after fiscal instability triggered a 12% over-expenditure in the 2013.
Ghana has since seen an injection of two tranches as part of the 940 million dollars contract.
–
By: Lawrence Segbefia/citibusinessnews.com/Ghana