IMF begins formal engagements with government
IMF assistance to help shore up foreign reserves
Minister for tourism, Arts, and Culture, Mohammed Awal has backed government’s decision to seek an IMF bailout.
According to him, the country will come out “stronger” after the completion of the program.
Speaking at a forum in Accra, Mohammed Awal said “going to the IMF is the best decision we can take, especially at this time. It will help us have access to international funds to continue to develop our economy and make our country great again.”
The decision to seek financial assistance from the Bretton Woods institution, according to the government, is to help shore up the country’s foreign reserves, stabilize the cedi, continue smooth payments for imports (petroleum products, pharmaceuticals, and medical equipment, among others) and restore conditions for strong economic growth (including support for government flagship programs) while correcting underlying problems.
Government also noted the decision to go to IMF at this time stems from the fact that the primary conditions that necessitate an IMF-supported program did not exist earlier.
“For a country to seek IMF support, it would need to have a balance of payments challenge. A few months ago, the conditions that pertain today and the outlook is considerably different from six months ago,” a statement from the Finance Ministry said.
Officials of the International Monetary Fund (IMF) are expected to meet government officials today to begin engagements on a possible financial bailout.
The IMF team is however led by the Mission Chief for Ghana, Carlo Sdralevich.
The team will have in-person meetings with officials of the Finance Ministry, the Economic Management Team, and the Presidency from July 6 to July 13.
SSD/FNOQ
Mohammed Awal is Tourism Minister