IMF praises Ghana's economic efforts

Accra, Sept. 4, GNA - An International Monetary Fund (IMF) Mission to Ghana has congratulated Ghana for establishing a solid foundation for debt sustainability, saying the authorities were determined to maintain the status quo or step it up.

The Mission, which held discussions for the sixth and final review of the Poverty Reduction and Growth Facility arrangement with the IMF, was led by Mr Sam Itam, Senior Advisor in the African Department. It held discussions with Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, and Dr Paul Acquah, Governor of the Bank of Ghana. The team also held discussions with President John Agyekum Kufuor.

The Mission emphasized that ongoing expansion in the infrastructure and social sectors should be complemented with further reforms to foster private sector development, including steps to deepen the financial sector and measures to improve income distribution.

"Therefore, looking ahead, the main challenge for Ghana is to find the necessary resources to undertake the investment programme outlined in the Government's development strategy while preserving debt sustainability", Mr Itam told a press briefing in Accra on Monday.

"In this light, reassessing the expenditure pattern and relative contribution of all investment projects is a necessary condition that the Government has established."

The Mission welcomed Government's intention of a policy dialogue with all development partners and the IMF, which has consequently led to the Government expressing interest in developing an economic and financial programme that could provide the basis for a policy support instrument arrangement when the current PRGF arrangement expired. Such a programme would aim at enhancing growth-critical policies, while maintaining the hard-earned macroeconomic stability, strengthening debt management and deepening the domestic capital markets.

It also aims at creating the environment to access international capital markets in the appropriate circumstances.

Ghana would receive 39.23 million dollars if the IMF Board gives its approval to the Mission's findings.