Programme with IMF yields positive results but...

The international rating firm, Fitch, says Ghana’s programme with the International Monetary Fund (IMF) has improved its policy credibility.

It said the programme had also improved the country’s commitment to fiscal reforms and access to external financing.

In a statement, it described the decision to deregulate fuel prices as the most significant reform by the government.

However, it said a high degree of uncertainty remained ahead of parliamentary and presidential elections due in late 2016 which might see spending pressures re-emerge as in past electoral cycles.

It said fiscal consolidation efforts remained on track, with the latest data until July 2015 showing a budget deficit of 3.1 per cent of Gross Domestic Product (GDP), against a target of four per cent.

“Revenue over-performed, supported by additional tax measures under the IMF programme, while expenditure came in below budget. This was largely due to lower interest costs, underpayme