Ghana's major development partner, the International Monetary Fund (IMF) says it is unaware of government’s decision to push for an extension of the bailout programme.
“We are not aware of the authorities’ decision to seek an extension to the on-going IMF-supported ECF programme,” an IMF spokesperson told this paper in an email communication.
The Fund however added that any request for an extension could be considered “if the authorities request it to achieve the country's economic objectives.”
The new Ghanaian government, utterly dissatisfied with the economic mess announced major changes in its first budget statement and indicated that it would seek an extension to the country’s three-year programme with the Bretton Woods institution.
Following that announcement, some analysts, labour, business and civil society groups have either called for outright discontinuation of the programme or full disclosure of the details of the planned extension.
The Fund disclosed that its mission to Accra will be in April and “we expect to hold discussions under the Article IV consultation and do a review.”
“The mission aims to assess programme performance as of end-June 2016 and revise macroeconomic projections for 2017 and the medium-term,” the spokesperson added.
The Fund early this year, welcomed government’s decision to continue implementing the programme, indicating that it would be ready to hold discussions on the status of the programme during the next mission.
The third programme review was completed at end-September 2016 and “we are planning to initiate the fourth review during the mission in April. The Spokesperson admitted that the implementation of the programme weakened last year, notably due to a significant fiscal slippage, with the budget deficit reaching 8¾ percent of GDP in 2016, significantly exceeding the deficit of 5¼ percent of GDP that we projected in September.
“Going forward, this means that stronger efforts will be required to achieve the targeted fiscal consolidation,” the Fund stated.
The programme was instrumental for reducing major macroeconomic imbalances and engendering confidence in the economy. Among others, the fiscal deficit declined from 10 per cent of GDP in 2014 to 7 per cent of GDP in 2015. This helped stabilize the exchange rate and reduce interest rates on government debt. Inflation has also started to come down.
Source: The Finder
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WHEN WE REFUSE TO TAKE OUR DESTINIES INTO OUR OWN HANDS, WHAT ELSE SHOULD WE EXPECT. 60yrs after independence and we still take our 'empty plates' to a 'settlers'house to ask for food and leftovers for ourselves, wifes and children. Who will ever take you serious. Till WE TAKE GOD'S WORD seriusly and rule over our 'EDEN', till it and be fruitful, and really multiply.'they' will continue to 'leech' us. SSSHHH, MO MMA Y3N Y3 KOMMM KAKRA NA Y3NY3 NEA Y3 WC NO HO ADWUMA, NA ASAASE WURA NO B3 TC NSU AGU Y3N NNCBAE SO
Massa; you are right this IMF or Betton Woods organisation is rather a partner in underdeveloment not a develoment partner ; the TRUTH is that our politicians don't know and if they knew about the motives ; there is nothing they can do because they are not creative and are GREEDY individuals seeking to ROB Ghana for their families ; the US dollar have always been a convertible currency which simply means the domestic US dollar which runs in the US runs parallel to the external US dollar which is merely a paper currency which is printed and lent to African counteries like Ghana and earns them interest ; the external dollar has no inflationary effect on the US domestic currency but is inflationary to our economy therefore at any one time the US is able to print huge dollar sums and it lend to Ghana as a development finance but does not affect the US the huge US deficit ; Ghanaians pay US huge interst on these fake paper dollars in terms of real dollar money which goes back to the US treasury and helps the US economy another frusdulent means is that the IMF has a pool of nations who have excess funds or accumulated surplus funds and are syndicated and lent to Ghana under IMF programmes and false economic strategies which never work and will never work in Ghana ; to me the only solution to this fake dumping of uless dollar paper dollar and external currency debt on Ghana is to generate revenue internally to pay our debts by taking control of our macro-economic variables like taxes and financing project with our own generated funds and not borrowed money ; from the US and other convertible economic currencies ; the more you borrow from them the better for them ; they do not lose anything but rather gain a lot through interest payments besides all they do is write yp agreements which our own civil servants doo not read or understand ; een if these agreements are sent to external legal houses ; they are told bluntly through the illuminati to ill advice Ghana ; DO NOT ANSWER THEM !!! : THEY ARE DUMP PEOPLE !!!!; to me IMF programmes are a complete FRAUD and must be re-examined again they have never worked in Frica and will never work in Ghana .
why should we allow these tives to print papers into dollars and bring it down to Africa to buy the whole continent? its a shame, Africa is being sold for something as cheap as paper.
IMF has never been a development partner to any African country! they're rather under development partners.