Government’s decision to engage the International Monetary Fund (IMF) has been described as one that would improve the country’s fiscal position and re-instill confidence among investors.
According to Auditing and accounting firm, Deloitte Ghana, the current economic challenges mean Ghana needs to access the Fund desperately.
In its review of the 2023 Budget Statement and Economic Policy, the firm said “Based on history, the fund may require government to improve revenue which may be in the form of new taxes, which is likely to worsen the plight of Ghanaians especially within this current economic climate.”
“Some conditionalities may require government to implement expenditure cutting measures including halting new employment and ongoing and new capital projects in the public sector,” Deloitte Ghana added.
It however pointed out that the possible IMF-supported programme is expected to increase Ghana’s foreign currency reserves as well as stabilise the value of the local currency and soaring inflation which government says is an imported one.
Deloitte Ghana in its review also said an IMF programme will result in credibility and boost investor confidence.
This, it added will ensure Ghana regains access to the international capital market under more favourable conditions in the medium to long term.
Meanwhile, government is hoping to reach a Staff Level Agreement by the end of this year with the IMF to help restore macroeconomic stability, among others.
Ghana is targeting to receive US$3 billion over three years under an Extended Credit Facility from the IMF.