{"id":287698,"date":"2017-01-24T16:17:48","date_gmt":"2017-01-24T16:17:48","guid":{"rendered":"http:\/\/citifmonline.com\/?p=287698"},"modified":"2017-01-24T16:17:48","modified_gmt":"2017-01-24T16:17:48","slug":"imf-review-to-determine-deficit-financing-options","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=287698","title":{"rendered":"IMF review to determine deficit financing options"},"content":{"rendered":"

The Bank of Ghana has told Citi Business News<\/strong> it will strictly abide by any agreement reached by the government and the International Monetary Fund (IMF) on the financing of government\u2019s budget deficit.<\/p>\n

[contextly_sidebar id=”qnp7HS7ecoQn6p7k94eqVcjvILL6NZhx”]It follows a review of the extended credit facility by the IMF and government, in February.<\/p>\n

Governor Dr. Abdul Nashiru Issahaku believes the review should not affect the medium to long term projections of the Central Bank in maintaining fiscal stability.<\/p>\n

\u201cFor us whatever the outcome of the renegotiation and I did mention, the objective must be to stabilize the macro economy and the renegotiation has to be agreed with the fund whatever it is whether it is five percent or zero percent,\u201d he said.<\/p>\n

The NPP government has given indication it will resort to the 5 percent budget deficit financing provided for by the BoG Act.<\/p>\n

The Senior Minister Nominee, Yaw Osafo Maafo stated that the NPP government may access financing from the Bank of Ghana.<\/p>\n

He argues that the decision is to allow the government losen up the fiscal space that will be needed to undertake economic plans outlined in propelling economic growth.<\/p>\n

\u201cIt is a fact that under Article 181 the law was breached, and we want harmony, we do not want the situation where the international community will come in and also read meaning that Ghana has entered in to an illegality with the IMF. They are coming early in February as a staff for the review exercise. We must do the review before our budget comes out early in March,\u201d he said before the Appointment Committee of parliament.<\/p>\n

As part of the conditions of the extended credit facility, the IMF opposed the central bank\u2019s financing of government\u2019s budget deficit.<\/p>\n

Though the erstwhile NDC government stuck with a zero budget deficit financing in 2016, Parliament approved funding of government\u2019s budget deficit of up to a maximum of 5 percent of the previous year\u2019s budget.<\/p>\n

But Dr. Issahaku maintains that the agreement by all parties will determine any further action.<\/p>\n

\u201cOur efforts as a central bank must support any agreement or effort at stabilizing the macro economy and that remains our position.\u201d<\/p>\n

–<\/p>\n

By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of Ghana has told Citi Business News it will strictly abide by any agreement reached by the government and the International Monetary Fund (IMF) on the financing of government\u2019s budget deficit. [contextly_sidebar id=”qnp7HS7ecoQn6p7k94eqVcjvILL6NZhx”]It follows a review of the extended credit facility by the IMF and government, in February. Governor Dr. Abdul Nashiru Issahaku […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[121,32,171,11],"tags":[],"class_list":["post-287698","post","type-post","status-publish","format-standard","hentry","category-banking-and-finance","category-business","category-local-economy","category-top-stories"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/287698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=287698"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/287698\/revisions"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=287698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=287698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=287698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}