$3bn IMF bailout has reinforced economic recovery – Addison

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has observed that the $ 3 billion programme approved for Ghana by the International Monetary Fund (IMF) has reinforced economic recovery.

Governor of the BoG Dr Ernest Addisonsaid at the 112th MPC press conference in Accra on Monday, May 22 that this should further rebuild investor confidence in the economy.

He said “The Committee assessed that the recent approval of the 3bn ECF arrangement has reinforced recovery efforts at restoring macroeconomic stability and debt sustainability. This should further help re-establish investor confidence in the domestic economy.

“While this development is positive for the domestic economy, it is conditional on the strong implementation of the fiscal and structural policies under the programme going forward. This includes structural reforms on tax policy, revenue administration, and public financial management to boost revenue and reposition fiscal policy implementation on a consolidated and sustainable path.”

It is recalled that the IMF Mission Chief for Ghana Stéphane Roudet, said that the $3 billion bailout would ensure macroeconomic stability in Ghana’s economy.

Similarly, he said, it would lead to inclusive economic growth in the coming months.

Mr Stéphane Roudetalso said the programme would result in reforms to encourage private sector investments and also build international reserves.

“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference in Washington on Thursday, May 18.

“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.

At the same press conference, Ghana’s Finance Minister Ken Ofori-Atta said there is no rush on the part of the government to return to the international capital market to borrow following the coming on board the $3billion bailout.

He said during a joint Ghana-IMF press conference in Washington on Thursday, May 18 when asked a question about Ghana returning to the capital market that “In addition to the revenue measures that we saw in the budget that are improving at GRA  and that will give us the resource to move forward, curtailing and managing our expenditures are going to be important.

“There is no rush in going back to the international capital market, our expectation is that in managing our expenditure and increasing our revenue we will have the resources to do it, working towards the capital market is important because we don’t get our ratings up and make the country more attractive for investors, especially FDIs. So no one is rushing to the capital market at this juncture.”

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.

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