IMF to consider Ghana’s 3rd review by mid September

Citi Business News has gathered that the third review of Ghana’s program with the International Monetary Fund (IMF) is scheduled for consideration by middle of September 2016.

Responding to a letter by Citi Business News, the Fund stated that it is meeting government officials to discuss pressures that have emerged in the main State Owned Enterprises (SOEs) in the energy sector.

According to the statement “discussions between staff and the authorities are currently ongoing to update macroeconomic projections, firm up the fiscal outlook for the remainder of 2016 and ascertain that financial pressures in SOEs will not pose additional risks to the central government budget”.

It pointed out that subject to a quick and positive conclusion of the discussions; the IMF team expects the third review to be considered by middle of next month.

The statement assured that a visiting IMF Staff team in Accra last May assessed the implementation of the program to be broadly satisfactory and identified a few areas where further work and discussions were needed before the third review under the ECF-supported program could be completed.

“Since then several important legislations have been adopted by Parliament, including the Banks and Specialized Deposit-Taking Institutions Bill, the Deposit Insurance Bill, the Public Finance Management Law and the Amended Bank of Ghana Act,” it said.

IMF programme with Ghana On Friday, 3rd April, 2015, the Executive Board of the International Monetary Fund (IMF) approved a 3-year Extended Credit Facility (ECF) Program for Ghana.

A total amount of SDR664.20 million (US$918 million) will be given to Ghana as balance of payments support over the 3-year period.

The total amount will be disbursed in eight equal tranches.

The first disbursement was made immediately after the Executive Board approval of the program. Government is currently waiting the third tranche after an IMF team visited Ghana to undertake an assessment.

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