It is unclear whether or not Ghana will continue with the International Monetary Fund’s Extended Credit Facility which ends in 2017
This was hinted by the Finance Minister Ken Ofori Atta during a review of the IMF’s three year Extended Credit Facility programme with the IMF Mission in Ghana
“We are committed to ending it when it should have ended… That’s a Cabinet decision” he said, but admitted it will take a lot of hardwork to achieve that.
The IMF deal worth $918 million was to give credibility to Ghana’s economic policies and to attract better investment.
As part of the deal, the then government was to work assiduously on the macro-economic stability by reducing inflation, fiscal deficit and bring Ghana’s debt level to sustainable levels.
It is expected that the credit facility programme will end in 2017 if Ghana is able to meet all targets.
Reports say, the erstwhile Mahama government was unanle to meet any of the targets.
With this development the Nana Akufo-Addo led government is still in a dilemma to consider a possible extension of the programme.
According to the Finance Minister the deal may just be completed in 2017 as initially agreed with the NDC government.
“It means a lot more hard work than we have to, but that’s where we are in terms of Cabinet decision. The government is working assiduously to increasing revenue by 34% and will achieve that by sealing revenue leakages.”
The IMF Mission Chief to Ghana, Analisa Fedelino said the initiatives taken by the government are promising but expects a rigorous approach in fighting Ghana’s burgeoning debt.
The IMF mission chief said Ghana’s economic prospects for 2017 are high, giving an overall overview of the economy in 2017.
“Economic growth is expected to pick up, inflation is declining and there are prospects for the significant increase in the foreign exchange reserve position following significant foreign exchange inflows in recent weeks”.
Fedelino said the IMF is encouraged by the promise by the Finance Minister to control tax exemptions and to strengthen the spending disciplines.
Stay committed to controlling Ghana’s public debt, she added.