Finance Minister, Ken Ofori-Atta has revealed that Ghana’s bilateral partners have pledged to support the country as it engages the International Monetary Fund (IMF) to address its economic challenges.
The United Kingdom, Germany and France, Mr Ofori-Atta said, made the announcement during an in-camera bilateral meeting in Washington, DC, USA.
Speaking to the press after the meeting, the Finance Minister stated that in cognizance of the fact that “Ghana still has great strengths to build on, as our productive sectors are still growing, expenditures are being contained…, our bilateral partners are demonstrating increased support for our recovery plan.”
Ghana has sought economic assistance from the International Monetary Fund (IMF) and according to the Finance Minister, “formal conclusion of IMF negotiations should support our balance of payments position.”
The balance of payment for Ghana, which is a statement that summarises the transactions of an economy with the rest of the world, has been worrying.
In October 2022, the Bank of Ghana pegged the country’s debt stock at ₵402 billion as of July 2022, representing 68% of Gross Domestic Product (GDP).
It is a gloomy picture for the country, as the IMF has projected that the West African country will end the year with a Debt-to-GDP of 90.7%.
Official negotiations between the Government of Ghana and the International Monetary Fund (IMF) for an economic programme took off on Monday, September 26, 2022, after the Finance Minister reached out to the Fund in July this year.
A delegation from the IMF has already visited Ghana to assess the economic situation in the country. Findings show that the COVID-19 and Russia-Ukraine war have exacerbated the economic crisis facing the country.
Currently, the Finance Ministry is in the United States to continue further discussions.
The Enhanced Domestic Programme (EDP) Ghana is seeking contains a set of time-bound structural reforms and fiscal consolidation measures to address debt levels and fiscal accounts on a sustainable path over the medium term.