The International Monetary Fund (IMF) has welcomed the Akufo-Addo-led government’s intention to conduct a full audit of outstanding obligations under the 918 million dollar extended credit facility program.
A team from the IMF, led by Joël Toujas-Bernaté, who visited Accra recently to take stock of the 2016 economic developments and the outlook for 2017 said: “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”.
At the vetting of the Senior Minister Designate Yaw Osafo-Maafo, he stated that the new government would review the IMF program. “Now, the IMF program will certainly be reviewed and there are two main reasons why the IMF program must be reviewed I have already hinted to one of the bosses of the IMF.”
“Now President Nana Akufo Addo came out with a manifesto and in that manifesto, he needs physical space to move it. The current program literally squeezes all the physical space out and therefore from the point of view of the program of the NPP, the IMF program must be reviewed”, he said.
In 2015, Ghana signed onto a 918 million dollar extended credit facility program with the fund. The country has so far received a total of about US$464.6 million as disbursements from the IMF. The last tranche was received on 28th September, 2016.
The program aims to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending.
The IMF program which was not approved by Parliament has been heavily criticized by the new government, raising concerns that it will be reviewed under their tenure. But IMF has welcomed the review.
Meanwhile, the new government has expressed its intent to continue with the current program with the IMF. Officials outlined bold policies to restore fiscal discipline and debt sustainability and also to support growth and private sector development, according to the IMF mission’s end of visit press statement.
African Eye Report
