Home Headlines Ghana, IMF Reach Staff-level Agreement; $3bn Deal Sealed

Ghana, IMF Reach Staff-level Agreement; $3bn Deal Sealed

0
IMF, Ghana
IMF, Ghana

Ghana and the International Monetary Fund (IMF) have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.

The authorities’ strong reform programme aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation, a statement issued by the IMF said.

In addition to a frontloaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the IMF said the programme envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.

The COVID-19 pandemic, rising global food prices, rising crude oil and energy prices; and the Russia-Ukraine war adversely affected Ghana’s macroeconomy, with spillovers to the financial sector.

The combination of adverse external shocks had exposed Ghana to a surge in inflation, a large exchange rate depreciation and stress on the financing of the budget, which taken together have put our public debt on an unsustainable path.

Debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of GDP.

The DSA had demonstrated that Ghana is faced with a significant financing gap over the coming years revealing that public debt is unsustainable.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version