The Senior Minister, Yaw Osafo-Marfo, has said that government and the International Monetary Fund (IMF) have reached an agreement for government to roll out its ‘one district, one factory project’ as part of the review of the Extended Credit Facility (ECF) programme.
Speaking to the media in Accra, the Senior Minister said: “IMF has a programme with Ghana, and within the programme are certain restrictions. We have gone to fight for elections and we won based on our manifesto. In our manifesto, we said one district, one factory. So we need some fiscal space to implement that one.
And the IMF knows that we need it. They know that we are in power because we promised certain things. Therefore, we are marrying the two and so far, we have not had any problem. They have agreed,” he said.
He reiterated the need for government to continue to remain committed to the programme despite earlier assertions that government will discontinue it.
“The IMF programme provides market support for countries; it provides some confidence in you as a country and you do not want to give wrong signals to the market out there. When you are going to borrow, your interest rate depends on your ratings. The programme will help for people to put confidence in you as a country, so we must look at these things very carefully and make sure that Ghana does not lose its market value,” Mr. Osafo Maafo said.
Meanwhile, the IMF has expressed some concerns about the economy after it concluded its visit to the country to review the progress of the ECF programme, citing fiscal deficit deterioration as a major worry.
Joel Toujas-Bernate, leader of the mission, noted that: “In 2016, the overall fiscal deficit (on a cash basis) deteriorated to an estimated 9 percent of GDP, instead of declining to 5¼ percent of GDP as envisaged under the IMF-supported program. The large deviation was mainly due to poor oil and non-oil revenue performance and large expenditure overruns. As a result, the government’s debt-to-GDP ratio increased further to close to 74 percent of GDP at end-2016.”
He further welcomed government’s intention to control public spending and protection of the public purse.
“Significant public spending commitments that bypassed public finance management (PFM) systems were reported. We welcome the new government’s intention to conduct a full audit of outstanding obligations, its commitment to transparency and its readiness to take strong remedial actions to ensure the integrity of the PFM systems going forward.
The large financial imbalances of state-owned enterprises in the energy sector also need to be addressed with urgency to avoid the build-up of contingent liabilities for the new government. We welcome the new government’s commitments to encourage its departments and agencies to implement growth-enhancing reforms in a fiscally sustainable manner,” he added.
Source: B&FT
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The comment that NPP wants to rule Ghana forever because of free SHS ,is,completly, missing the point. NPP introduced NHIS and Ghanaians never forgot this during the tenure of NDC govt. This was a legacy that affected the entire population directly and intimately. NDC govt undertook infrastructural developments in certain locations. If you live in Suhum you will never ever benefit from Kasoa Interchange and vice versa. So as a legacy NDC will not be mentioned by posterity in Suhum and vice versa.Whereas free SHS directly affects everyone in all parts of Ghana. This is what we are talking about. If Free SHS becomes successful NPP will never be forgotten , even if they are out of power. Thank You
The man is a Senior minister in government so any question asked about the economy he is obliged to answer. let's be fair to him.
This akuffo addict patapaa at 73 and the entire NPPigs think that their hypocritical free SHS will make them rule Ghana forever then they are living in a ***barred word***'s paradise. kuffuor brought NHIS to benefit majority of Ghanaians but why did your party lost to NDC again even when NDC had ruled for 19 years. This victory of your party is circumstantial but not because Ghanaians love your party or that your akuffo addict patapaa dictator. So they should call their invisible hooligans to order before they lose credibility in the sight of Ghanaians.
It is strange that NDC govt went to IMF many times to get loans but these loans were employed in a haphazard manner- no one can measure the outcomes/outputs of these loans. The National Debt has gone up through our inability to pay back the capital and the ensuing interest payments. Given what the NPP has put before IMF plus the current positive political environment in Ghana, IMF did not hesitate to give the go-ahead for NPP to realise/materialise their seminal objectives- objectives that are extrinsically and intrinsically measurable and will benefit the citizenry in the short, medium and long term. Indeed, paying the loan back via the positive advantages of the usage of the loan, will be easy and straightforward. It is because of this that was why the renegotiation of the loan was pleasantly easy for IMF to offer it. Remember too that NPP has a previous history of making the effort to pay off Ghana's debts and this history has stood Ghana and NPP in good stead within international financial arena. Bravo to this level headed Govt. There has been unjustifiable criticisms from some uneducated/ill-informed quarters of the population. Pl desist from this unfair action. Finally , pl be aware that NPP understands the current inter-connected and interdependent world and if , as a govt,you play your card right , the international community will always assist you in times of need. Godspeed NPP!!!!!!
Some times I wish I had the power to rule this country. Nana Addo don't allow for to rot in our farms use it for school feeding
So ndc commentators can not stop disgracing themselves? Dr Bawumia was right they don't read, if they don't know the ***barred word*** administration signed IMF contract for three years so there's no way NPP govt can stop BUT there's a need to renegotiate PROPERLY to get a bit of relief from that unsensibble deal with IMF. SURELY NPP will come out from IMF. LONG LIVE NANA ADDO-BAWUMIA, LONG LIVE NPP AND SUPPORTERS, LONG LIVE GHANA
Kufuor made us independent of IMF & your angels ndc have brought us back to it! You can't just leave where there's a change of government. Ampa Bawumia said you guys don't read. The evidence is there for all of us to see anytime we access the comment section!
Are these not the same people who were opposing the former government's decision to consult the IMF when the going became tough and now what are we hearing, the IMF has approved their one what, ei, this world is actually a very small place, didn't they say " SIKA NO WOHO" to wit the money is there, why are running to IMF, so where is the money they were talking about, was it really there or they wee being mischievous, Oh, Lord have mercy.
You have shortened your life on this earth and above.
IMF is a kriminal organization. Why should we seek approval from the very people who have been steeling our oil? So we can't even build a factory without consulting our enemies?? The black man is sikk