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Business News of Friday, 30 September 2022

Source: www.ghanaweb.com

Possible IMF bailout programme to boost investor confidence – ISSER

Professor Peter Quartey, Economist and Director of Research, ISSER-UG Professor Peter Quartey, Economist and Director of Research, ISSER-UG

Economist, Professor Peter Quartey has expressed confidence that the possible bailout programme from the International Monetary Fund will boost investor confidence in Ghana.

This comes after the Government of Ghana and officials from the Fund have commenced a comprehensive debt sustainability analysis which is required to reach an agreement.

Ghana is targeting US$3 billion under an economic support programme.

Prof. Quartey speaking on the development said interest by both parties to reach an agreement will give a positive signal to investors.

“The IMF has its own processes that it goes through to ensure that it comes in to rescue the situation. Some might take six to twelve months. We heard the IMF director say hopefully by December, all things being equal, we’d have the program so we’re hoping for that.”

“Although given the situation that we find ourselves, we need an injection of foreign currency into the country. But the fact that the IMF is engaging Ghana and there is progress, I believe it’s gradually bringing in some confidence into the economy and I believe some investors, despite the Fitch downgrade, will still be looking at Ghana favourably in the coming months.”

The Director of the Institute of Statistical, Social and Economic Research at the University of Ghana said this in an interview with Citi Business News.

In the course of this year, demand for forex has overtaken supplies at a time when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.

This has led to the downgrading of Ghana’s creditworthiness to junk status by international rating agencies, culminating in the depreciation of the local currency, and other economic challenges.

The situation has since compelled Ghana to enter negotiations with the International Monetary Fund for a possible economic support programme which is expected to be accessed in 2023 once an agreement can be reached.

MA/FNOQ

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