‘We’ve made good progress’ – IMF on Ghana’s support programme talks

The International Monetary Fund (IMF) team, led by Stéphane Roudet, have indicated that there has been good progress regarding Ghana’s request for a financial bailout from the fund.

After meeting with Ghana’s Finance Minister, Ken Ofori-Atta and Bank of Ghana Governor, Dr. Ernest Addison in Washington DC, the IMF team leader said both teams had a fruitful discussion in identifying specific policies that would restore macroeconomic stability.

“The Ghanaian delegation and IMF staff had very fruitful discussions on the authorities’ post-COVID program for economic growth and associated policies and reforms that could be supported by a new IMF arrangement.

“We made good progress in identifying specific policies that would restore macroeconomic stability and lay the foundation for stronger and more inclusive growth. The IMF team and the Ghanaian authorities remain fully committed to reaching an agreement on a framework and policies for an IMF-supported program as soon as feasible. Discussions will continue in the weeks ahead, with a follow-up mission to take place expeditiously,” Stéphane Roudet said in a statement after the meeting.

The Finance Minister had earlier assured Ghanaians that the economy is in good shape despite the continuous depreciation of the Cedi.

Speaking to a journalist of Accra-based Asaase Radio from Washington DC, Ken Ofori-Atta said, “It is a bit perplexing because as you know, typically we go to markets at the beginning of the year and get our two billion.

“But that we were not able to do, we were able to then get US$750 from AfriExim in the summer, August or so, to stabilize it. Then we moved on traditionally as we do, the ASL, the annual syndicated loan of COCOBOD, and that came in very strongly. So, it is quite perplexing to see where it is going.”

“The support we are getting from countries like Germany, France etc. we are confident that we will get the resources needed. So, we really would want people to know not to panic or be rushing to put pressure on the currency. I think it is unnecessary and we are in good shape.

“Of course, typically in October, people are importing for Christmas and maybe there is a rush for that. But my expectation is that once we also conclude the fund, that would lead to the Fund’s disbursement early next year.”

The Cedi has recently been classified by Bloomberg as the worst-performing currency against the US Dollar.

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Currently, the Cedi is trading at around GH₵13 – GH₵14 to a dollar at some forex bureaus.