IMF describes Ghana discussions as “candid” and “constructive”

The International Monetary Fund (IMF) has described its 10-day discussions with Ghanaian authorities as “constructive” and “candid”.

A team led by Joël Toujas-Bernaté began discussions on Tuesday, September 16 on a programme to boost confidence in the ailing Ghanaian economy.

It brought discussions to an end on Thursday, September 25.

The team leader admitted Ghana continues to face “significant domestic and external vulnerabilities on the back of a large fiscal deficit, a slowdown in economic growth and rising inflation.”

He added: “These vulnerabilities are putting Ghana’s medium-term prospects at risk.”

Mr Toujas-Bernaté, however, said recent indicators like the rebounding of the Cedi and oversubscription of the $1 billion Eurobond are positive signs that the economy will attain stability.

Ghana’s team was headed by Former Finance Minister Dr Kwesi Botchwey.

While in Ghana, the IMF mission met with President John Dramani Mahama, Vice President Paa Kwesi Amissah-Arthur, Finance Minister Seth Terkper, Minister of Gender, Children and Social Protection Nana Oye Lithur, Bank of Ghana Governor Dr Henry Wampah and other key officials in the private sector, donor community and civil society.

“The authorities identified earlier this year a set of measures designed to put the country back on track, while preserving growth momentum,” Mr Toujas-Bernaté said after the discussions.

Among measures he recommended as possible programmes to be implemented by the IMF over a three-year period are reduction in tax exemptions, strengthened revenue administration and expansion of well-targeted social protection programmes.

“Discussions on a possible program that could be supported by the IMF will continue in Washington during the Annual Meetings,” he mentioned.