Ghana, IMF begin talks on economy
The government and officials of the International Monetary Fund (IMF) are expected to begin discussions in Accra today, on an economic programme for the country.
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The talks are intended for the government and the IMF to chart a path to resolve the country’s economic challenges.
A former Finance Minister, Professor Kwesi Botchwey, who is expected to lead Ghana's team to the negotiation table, would later meet the IMF Board in Washington in October, this year to decide on the programme for Ghana.
The meeting in Washington would also spell out how funds will be disbursed on condition that the programme comes along with a financial package.
Sources at the Presidency told the Daily Graphic that the IMF had already made available to the government a list of requirements for the negotiations.
The sources expressed optimism about the outcome.
The Deputy Managing Director of the IMF, Mr Min Zhu, had earlier in a statement announced that it had received a formal request from Ghana to initiate discussions on an IMF support programme.
The statement said, “The Fund stands ready to help Ghana address the current economic challenges it is facing.”
Government decision
The government recently announced its decision to seek assistance from the IMF to help restore stability in the economy, particularly in the areas of strengthening the local currency and reducing the fiscal deficit.
This was greeted with mixed reactions by the public, including the minority in Parliament, who blamed the current state of the economy on gross mismanagement.
Industry stakeholders have expressed the belief that an IMF assistance would further burden Ghanaians with economic hardships, since stringent measures would have to be instituted to salvage the economy.
President Mahama
But President John Mahama has refuted such claims, explaining that the government decided to open discussions with the IMF not because of its failure to manage the economy.
He said rather, the country needed the IMF bailout for policy credibility and to win the confidence of international financial institutions, capital markets and investors, for the measures being implemented to restore economic stability and growth.