Ofori-Atta Holds Another Meeting With IMF Over Bailout

The government has held another constructive engagement with the International Monetary Fund (IMF) on the bailout.

Minister of Finance Ken Ofori-Atta led a delegation from Ghana to the meeting, which was held outside Ghana with the Managing Director of the Fund, Kristalina Georgieva and her team.

The meeting, which appears successful, was centred on Ghana’s economic challenges and the way forward.

IMF has reiterated its readiness to help Ghana stabilize the economy and lay ground for stronger growth, and help most of the vulnerable.

Confirming the engagement, the Managing Director of the Fund said in a Tweet that “Constructive meeting with the Ghana Finance Minister and his team on Ghana’s economic challenges and the way forward.

“We are ready to do our part to help the authorities stabilize the economy, lay the ground for stronger growth and help most of the vulnerable.”

Ghana had previously refused to seek IMF support.

But on July 1, 2022, the President of the Republic, Nana Addo Dankwa Akufo-Addo, gave a directive to the Ministry of Finance to commence an engagement with the International Monetary Fund (IMF) to support Ghana’s economic program.

This decision was taken amidst the economic crisis that the country is going through.

A major reason for seeking an IMF bailout is said to be the effects of COVID-19 and the Russian-Ukraine war.

A delegation from the IMF, on Wednesday, July 13, 2022, concluded a one-week working visit to Accra and began initial discussions with the Ghanaian authorities about a possible $3 billion bail-out loan.

During the visit, the IMF delegation held high-level meetings with stakeholders and discussed possible support for Ghana’s domestic economic recovery programme.

After the engagement, the Fund released a press statement on July 13, 2022, which among other things, states:

“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the Covid-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for manoeuvre.

“These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

“The IMF team held initial discussions…focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring the credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.”

The government has promised to work closely with the IMF in the coming weeks to complete its enhanced economic programme in support of a robust economic recovery.

In the meantime, Government reiterates its commitment to the various fiscal policy measures geared towards mitigating the impact of current global economic headwinds on the economy and Ghanaians.

The Ministry of Finance further assures Ghanaians of the Government’s steadfast commitment to a speedy economic recovery towards achieving a Ghana Beyond Aid.