IMF team to begin negotiations with government on July 7

IMF team arrives in Ghana

Government in talks with IMF

IMF assistance to shore up foreign reserves

Officials of the International Monetary Fund (IMF) are expected to meet government officials today to begin engagements on a possible financial bailout.

The team will, among other things, scrutinize the status of the government’s fiscal expenditure and projections for the year 2022.

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.

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.

FNOQ