The cash is expected to hit the government of Ghana’s accounts within the next few months.

This is however subject to Ghana’s ability to meet key targets set under the agreement with the Fund.

The move Citi Business News understands also comes on the back of the 5^th and 6^th reviews of the country’s performance under the Extended Credit Facility (ECF) Program.

The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah confirmed the visit from the IMF mission to Ghana.

According to him, the team’s report points to an appreciable performance under the set targets.

“After every review, if we are successful at the IMF’s Board, then there is a disbursement. So they are assessing Ghana’s performance and their verdict is that on virtually all the indicators, that is, the performance criteria, the government passed,” he told Citi Business News after a meeting with the IMF team in Parliament on Thursday, March 1, 2018.

Dr. Assibey Yeboah further said the disbursement should help strengthen the country’s balance of payment.

“So in all likelihood, these reviews will give government the clean bill of health for two disbursements of 118million dollars each to come in and that is going to cushion our balance of payment sufficiently.”

Ghana entered into the agreement with the IMF for the disbursement of some 918 million dollars to restore economic stability.

The agreement is expected to be concluded in April 2019 after an extension from the initial April 2018 date.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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Speaking on The Big Issue, the policy analyst cited the restricted spending in 2017 and increased budgetary allocations for 2018 as the reasons government will have to be wary of this year.

[contextly_sidebar id=”GK5ov9Ai8I3tSObtgbvJrKaVVu6vWWbA”]His comments were in response to President Nana Akufo-Addo’s State of the Nation Address, which highlighted the improved prospects of Ghana’s economy.

Progress made in the economy in 2017 included reduced inflation, increased economic growth, a rise in GDP by up to 7.9 percent, and an increase in Ghana’s international reserves.

The President, among other things, also noted that the World Bank has projected that Ghana’s economy will probably grow by 8.3 percent this year, which will be the fastest in the world in 2018.

Mr. Cudjoe acknowledge the economy’s growth as being “stellar” but said a proper reading the Akufo-Addo government’s handling of the economy will be in 2019 and beyond.

“There has been a stellar performance. The macroeconomic outlook is looking great but it is also looking great on the back of restricted spending in the first year. It is this year and the subsequent years that will actually test these macroeconomic figures, especially now that we have made huge budgetary allocations, to the Ministry of Special Development Initiatives for instance. The real test of the fortitude of the management of the economy will then be felt.”

Boldness with IMF deal

President Akufo-Addo, during his address, said he expected the improving macroeconomic indicators to usher Ghana out of the International Monetary Fund programme later this year after his administration extended the 2015 programme.

In response to this, Mr. Cudjoe said: “it was very reassuring to hear the President say that we were going to get out of the IMF deal, which is very useful.”

He lauded the boldness and optimism of the government to declare it would exceed the IMF’s projections.

“For the first time, we were able to tell the IMF that these are the expectation of the economy but we think that we can do better because we had put in place certain measures that would ensure private sector growth and enhance opportunities within the economy so that your fear that the economy may be going to a downward spiral may not actually happen,” the IMANI Africa President said.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post 2018 will provide true test for ‘recovering’ economy – IMANI Boss appeared first on Citi 97.3 FM - Relevant Radio. Always.

This follows the president’s State of the Nation Address on [Thursday] February 8, 2018, where he stated that the country’s economy had been projected by the World Bank and other international bodies to be the fastest growing in the world in 2018.

According to them, the upward trajectory of the economy is due to the solid foundation laid by the previous National Democratic Congress (NDC) government.

[contextly_sidebar id=”kCCazVYPavnDpena0dIiSwsFNoCWaLmb”]Minority Leader, Haruna Iddrisu, who addressed the press today [Friday], February 9, 2018, said contrary to the President’s projection, Ghana may not exit the International Monetary Fund (IMF) program by the end of this year as suggested by the president.

The IMF program which started in 2015, was to end in 2017, but the IMF upon concluding its fourth review of Ghana’s programme in August 2017, extended the programme by one year and approved a $94.2 million disbursement.

Haruna Iddrisu says Ghana can only exit the IMF program “if [Ghana] meets the benchmark of fiscal consolidation” adding that by the President’s assessment, Ghana is nowhere near exiting from the program.

“One of it is fundamental debt management and superior debt management strategy and its sustainability and to avoid moving the country into a debt distress country especially when they are issuing bonds. So as a Minority we are mindful and concerned about his early announcement and how that can affect the international financial market and even the Ghanaian economy as they continue to issue bonds. We have not met all the requirements and we are not likely to meet all the requirements,” headed.

According to Haruna Iddrisu, the Akufo-Addo government is only hiding behind refusal to clear arrears owed contractors, to suggest that fiscal discipline has been achieved.

“…The fact that you are accumulating arrears and not paying contractors does not mean you are disciplined fiscally and prudent, no. Yesterday [Thursday], he [President], was talking about the eastern corridor road, Bolgatanga-Bawku road, the contractor is virtually packing out of site for non-payment. Since he got some releases from the NDC to commence work, he has not had any substantial inflow from the government of Nana Addo Dankwa, Dr. Mahamudu Bawumia and the Finance Minister in order to be able to continue work.”

“They [NPP Government] are compelling many contractors to do what you can call a raiser cut…that does not respect the sanctity of contracts. Internationally, we are making the country a laughing stock because out of fear of political intimidation, many of them are giving in to what they should not including local contractors. We expect the government to stop those by force raiser cuts they are giving international contractual arrangements and others,” the Minority Leader noted.

On the claim that about 745,000 employment avenues were created under the Planting for Food and Jobs program, Haruna Iddrisu called for an independent assessment and full publication of the names of those employed under the program.

“All agricultural experts in this world and the country must interrogate the figures of 745,000 persons employed under planting for food because even the committee chairman’s own constituency the numbers are not what they are reporting…someone independent, if you have the list, please  publish it for us because its important. So if you distrust government and the minority, let’s have an independent assessment,” he added.

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By: Godwin A. Allotey & Duke M. Opoku/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Ghana can’t exit IMF program now – Minority appeared first on Citi 97.3 FM - Relevant Radio. Always.

The President is hopeful the fiscal discipline measures embarked on by the government’s Economic Management Team will enable Ghana to make prudence use of the country’s natural resources.

Government has embarked on a number of programmes in an attempt to bring some relief to Ghanaians burdened by a number of economic commitments.

Some of the major programmes include; Free Senior High School, Planting for Food and Jobs, One-District, One-Factory, One-Village One-Dam, One-constituency One-million dollars, among others

Reacting to a question in his second encounter with some selected journalist at the Flagstaff House today, [Wednesday], Nana Akufo-Addo explained that, unlike his government, the erstwhile John Mahama administration was not fiscally disciplined.

“My view is that if they [Mahama administration] had been more disciplined in the management of the public finances, we will not have had to recourse to the IMF in 2013 like we did,” he criticized.

According to him, there had not been a case of mismanagement of state resources by his administration so far due to the fiscal and monetary discipline being enforced by the government.

“The most important aspect of it is the discipline that government and the people of the country are prepared to undergo. That will be the best indication as to your capacity to continue, or whether you need to rush to Washington for a bailout”.

He maintained that Ghana will not need to go back to the IMF for a bailout if managers of the economy are prudent with the use of public funds.

He stated that the IMF merely holds government to a system that will prevent budget overruns and overspending.

Nana Akufo-Addo was of the view that with the right people, Ghana can implement all its major social intervention programmes to bring relief to Ghanaians while the country’s resources are prudently used.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

The post Mahama’s fiscal indiscipline took Ghana to IMF – Akufo-Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

Government spending and foreign debt are too high and it needs structural reform, Zimbabwe mission chief Gene Leon told Reuters news agency.

The country’s incoming leader Emmerson Mnangagwa has pledged to grow the economy and provide “jobs, jobs, jobs”.

The once-thriving economy is now seen as a regional basket case.

“The economic situation in Zimbabwe remains very difficult,” Mr Leon told Reuters.

He said high government spending should be reined in and Zimbabwe should address the large international debt it has defaulted on.

“Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support,” Mr Leon said.

Robert Mugabe, who led Zimbabwe for 37 years, stepped down earlier this week under pressure from the military and his own Zanu-PF party.

His policies, including disastrous land reforms and printing too much money, are blamed for the calamitous state of Zimbabwe’s economy.

On Thursday, Zimbabwe’s main opposition called for deep-rooted political reform to dismantle the repressive apparatus that sustained Mr Mugabe’s regime.

The Movement for Democratic Change (MDC) said it was cautiously optimistic that a Mnangagwa presidency would not “mimic and replicate the evil, corrupt, decadent and incompetent Mugabe regime”, reported AFP news agency.

It is unclear whether Zanu-PF will govern alone ahead of scheduled elections next year, or whether a coalition government of national unity that includes opposition groups will be formed.

Economic slide

Zimbabwe’s economy is half the size it was at the turn of the millennium.

Zimbabwe has not had a currency of its own since 2009, when the old Zimbabwean dollar buckled under hyperinflation – which is said to have reached 231 million per cent, worse even than the notorious levels in Germany following World War One.

Cash shortages mean Zimbabweans can often be seen queuing at banks. Economists say Zimbabwe needs a cash injection, but it has been barred from borrowing internationally since it began defaulting on its debt in 1999.

Some residents of the country’s capital, Harare, say they have already seen an improvement in their daily lives since the army came into the streets and Mr Mugabe was forced from office.

One benefit, they say, is the absence of police road blocks on the streets where officers demanded bribes from those travelling around.

“There used to be so many police roadblocks, with the driver having to pay $1 or $2 (75p-£1.50)” Spiwe Azvigumi, 31, an unemployed mother of three, told AFP.

“With the police off the roads, crime is actually down – they were so corrupt and now we are living free.”

–

Source: BBC

The post Zimbabwe needs immediate economic reforms – IMF appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the Nana Akufo-Addo government is bent on revamping the Ghanaian economy with or without such external support.

Speaking on the Citi Breakfast Show on Thursday, a day after the Finance Minister presented the 2018 budget to Parliament; the GIPC boss said they will do everything possible to boost Ghana’s economy.

[contextly_sidebar id=”6mTFauuT0pYMzPIM9ySo4Y0ACW4xq9ZC”]“With or without the IMF, I can confidently and comfortably say that here is a government and a Ministry of Finance which says with or without the IMF we are going to do the right things to put the economy on a trajectory of sustainable and irreversible growth. That is going to be challenging, and we will do it. That is the track where we are going,” he added.

Background

Despite its criticism of Ghana’s three year programme with IMF while in opposition, the NPP government allowed an extension of the programme for a year.

Per the new agreement, the programme will now end in April 2019, and Ghana will receive an additional 94 million dollars disbursement.

A Deputy Minister of Finance, Kwaku Kwarteng, had earlier disclosed that they accepted the extension under duress.

“…The IMF has been around for two years and they the IMF are now telling us that the programme has underperformed, and so we should now extend it. We didn’t think we needed that. So when we expressed that view to them… what we didn’t anticipate was the response we subsequently got from the IMF. It was that if we do not extend, then there is no way we were going to achieve the objectives of the programme so they will end the programme today,” he said.

Government has since been lambasted for agreeing to the extension especially after they criticized the Mahama government for the programme, which led to a freeze on wholesale public sector recruitment, among other things.

Some analysts say the NPP’s audacious social intervention programmes will adversely be affected because the IMF frowns on such initiatives.

NPP gov’t defies IMF

Also speaking on the Citi Breakfast Show, editor of the Financial Post newspaper, Toma Imihere, said government has defied some of the IMF’s directives.

“The government has decided to defy the IMF and adopt a fiscal consolidation pace which is actually slower than what the IMF has been insisting on in order to be able to create a certain level of growth. The IMF attitude has been just to fast-track the fiscal consolidation and get back on an even key. This government has decided that if you try to do that, by the time you’ve achieved your stability, you don’t have any industry or economy left. And I’m happy that the government has taken that decision.”

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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He noted the meetings were not only fruitful, but Ghana has a lot of leads to follow up on to boost the financial and energy sectors in particular.

[contextly_sidebar id=”f6e97YTZqtmc445C1uepFNsB7pkdCjvi”]Briefing the media after the meetings, Oppong – Nkrumah denied rumours that the Bretton Woods Institutions were against the Energy Bond.

“It isn’t true that the IMF was against our Energy Bond,” he pointed out, adding “There is a lot of investor appetite to take up the bond, which when successfully issued, will lead to permanently solving some of the challenges in the energy sector.”

He was hopeful the 10 billion Cedi Energy Bond will be listed successfully to offset the energy sector debt, which contributed significantly to the challenges of some banks in the country. The bond, which will be auctioned in tranches, will start with a first tranche of six billion cedis, Mr.Oppong-Nkrumah stressed.

Ghana’s delegation, which was led by Senior Minister Yaw Osafo Marfo, also met potential investors in an attempt to tickle their interest in the Ghanaian economy .

According to Oppong – Nkrumah, a lot of investors have “shown immense interest” in the government’s flagship programme – One District, One Factory, stating that the Trade Ministry and the Secretariat in charge of the policy are collaborating to win the hearts of investors.

“We also made some inroads in the financial sector, and the Finance Minister will follow up on them. We also met with officials of the IMF about the extended Credit Facility Programme and the next review. They were impressed with us and the progress we have made so far. Officials of the IMF are expected in the country for the fifth review on Wednesday so that we can access the next $90 million left to carry out developments,” the Ofoase – Ayirebi legislator added.

He further stated that, Ghana’s team also used the opportunity to update officials of the Millennium Challenge Account on the progress made with the ECG private sector participation program.

He promised that the team will follow up on every issue which came up at the meetings to ensure that President Akufo-Addo’s vision for the country is achieved.

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By: citifmonline.com/Ghana

The post IMF meetings fruitful, Energy Bond will succeed – Oppong-Nkrumah appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, such a move will rather enhance trading activities in the country, while inviting other countries to trade with Ghana.

[contextly_sidebar id=”E1SwEub7A6QOlXPvHpEQxAOhypURJtg0″]Government has extended its IMF program to April 2019, to enable it to meet set targets.

Ghana in 2015, entered into an agreement for $918 million to support the economy.

This extension has led to numerous agitations from various business groups as they believe the IMF program hampers employment opportunities among others.

But in an interview with Citi News, Dr. Spio Garbrah maintained that the programme can inure to the benefit of the business community.

“.. If your country is perceived by the international community to be a credible country from an economic and finance development and finance management point of view, then in theory, you are also a good destination for both private equity and are also a good destination for people who want to send their goods by way export…”

The benefits of the programme will also extend to favorable interest rates that will benefit businesses, Dr. Spio Garbrah added.

“Theoretically, if an IMF programme leads to you getting resources at a lower cost, that should also lead to lower interest rates for businesses who can use the lower interest rates to borrow, manufacture and to trade,” the former Trade Minister explained.

In the latest extension, IMF approved an additional 94 million dollar disbursement for the extension, which implied that freeze on government sector employment will linger on.

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By: Jessica Aryorkor Aryee/citifmonline.com/Ghana

The post Businesses can capitalise on IMF extension – Spio Garbrah appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to government, it was compelled to approve the extension because the IMF threatened to immediately abrogate the whole deal if they declined the proposal.

A Deputy Minister of Finance, Kwaku Kwarteng, who made the revelation on the Citi Breakfast Show on Monday, said the IMF told them that the programme “had under-performed” and Ghana would miss its objectives for going for the facility hence the only way to be back on track is an extension.

[contextly_sidebar id=”N27KTYNJCuSvSMxnFmqkL36DgKCPk3JD”]…The IMF has been around for two years and they the IMF are now telling us that the programme has under performed, and so we should now extend it. We didn’t think we needed that. So when we expressed that view to them… what we didn’t anticipate was the response we subsequently got from the IMF. It was that if we do not extend, then there is no way we were going to achieve the objectives of the programme so they will end the programme today,” he said.

The NPP government had in the past chastised the Mahama government for putting Ghana under the IMF programme and promised not to extend it after the programme elapsed in 2018. But per the new agreement, the programme will now end in April 2019.

IMF approved an additional 94 million dollar disbursement for the extension which implied that freeze on government sector employment will linger on.

Some Ghanaians subsequently lashed out at the Akufo-Addo government for the one year extension window.

But defending the issue on the Citi Breakfast Show, Mr. Kwarteng said government approved the extension because “we didn’t want to hurt Ghana’s credible image”

“…I for instance thought that, from what we had told them, we did not want to come out of the programme as though there is a new government and government had abandoned the programme, it will send a wrong signal to the market and it will hurt our image as a credible country so we said we were not going to do that.”

He said the IMF further threatened not to continue with the fourth quarter review of the programme with Ghana if the government rejects the request for an extension.

“That was in plain language that the IMF was telling us that if you do not extend beyond first quarter of 2018, then we think that we are not even going for the review,” the Deputy Finance Minister added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post We were ‘forced’ to extend IMF programme – Gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.

The extension also prompted critics to accuse the Akufo-Addo administration of being hypocritical as President Nana Akufo-Addo, as recently as July 2017, assured that his government would not extend the programme after it ended on December 2018.

[contextly_sidebar id=”PHF3xhvx5XuDyOLdP7heu31YDhuJZPUQ”]But the IMF, upon concluding its fourth review of Ghana’s programme in August 2017, extended the programme by one year and approved a $94.2 million disbursement.

Blaming gov’t unfair

First off, Mr. Casely Hayford noted on The Big Issue that it was “very unlikely that the government, in its isolationist’s view will go and say we want to extend the programme.”

Thus any criticism thrown government’s way would be unfair because “if the IMF suggested that we [NPP government] extend for one year then why are you blaming government for extending the progamme?”

He also expressed confidence in the current government to navigate this extension with prudent policies.

“The reason why we are doing what we are doing is because, we now think we have a credible government with a strong financial team which has a good financial team with good pragmatic solutions for solving the problems we are facing, and they are proving it.”

Per the IMF’s assessment, Ghana showcased a mixed macroeconomic performance, with significant external and domestic imbalances being attributed to policy slippages.

Economic growth in 2016 was at a low of 3.5 percent, though the IMF said improved growth was expected in 2017-18, owing to an increase in oil production, declining inflation, and lower imbalances with the right policy implementation.

According to Mr. Casely Hayford, failings holding the current government back should be attributed to the past National Democratic Congress government.

“… We have hanging deliverables, things that we were not able to complete during the previous government’s time. We’ve inherited it. You [the NPP government] must fix it and the IMF is saying; fix it as we go forward and you are saying; give me one more year and I will fix it.”

Extension was prudent

Aside from this, Mr. Caseley Hayford said the extension was simply “prudent business. That is what a sensible business person does.”

Expressing his argument in an analogy he said: “You go and borrow a 100,000 dollars from the bank and the agreement is that you will pay $10,000 every month for 10 months, including the interest. So you start paying.”

“Halfway through you say I can’t pay any more but somebody has offered me a certain amount of cash. Can we rearrange so that instead of $10,000 a month, I will pay you $6,000 a month and I will stretch it over the next two years? And the person who gave you the original money says, fine, no problem.”

“Why is that an embarrassment? How does that become a shame?” Mr. Casely Hayford quizzed.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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