Home Headlines IMF vows to aid Ghana in overcoming economic challenges

IMF vows to aid Ghana in overcoming economic challenges

Imf Visit Arrival
Imf Visit Arrival

The International Monetary Fund (IMF) pledged to support Ghana to overcome the current economic difficulties late Wednesday.

The IMF said this in a press release after its staff team concluded an initial assessment of the economic situation in the West African country.

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies,” said the statement.

During its visit to Ghana, the IMF team discussed the Ghanaian government’s Enhanced Domestic Program, which required an IMF lending arrangement.

IMF acknowledged that Ghana faced a challenging economic and social situation amid an increasingly difficult global environment.

It said the country’s fiscal and debt situation had severely worsened following the COVID-19 pandemic and the downgrading by global credit rating agencies, leading to the loss of access to the external market.

“These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, large exchange rate depreciation, and a surge in inflation,” said the IMF.

The statement said some of the priority areas discussed with the Ghanaian authorities included sustainably improving fiscal balances while protecting the vulnerable and poor and ensuring credibility of the monetary policy and exchange rate regimes.

It said discussions also centered on preserving financial sector stability and designing reforms to enhance growth, create jobs, and strengthen governance.

The Ghanaian government announced its decision on July 1 to start negotiations with the IMF for an economic bailout as economic challenges mounted. Enditem

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