The lawmaking body has finally given clarifications behind the organization's decision to the expand the three-year International Monetary Fund (IMF) Credit Facility program by a year.
As demonstrated by the government, it was compelled to embrace the extension in light of the way that the IMF undermined to in a split second annul the whole course of action if government declined the recommendation.
The Deputy Minister of Finance, Kwaku Kwarteng who made the exposure on the Citi Breakfast Show on Monday said the IMF uncovered to them that the program "had neglected to meet desires" and Ghana would miss its goals for going for the workplace therefore the most ideal approach to be back on track is a development.
"The IMF has been around for quite a while and they (the IMF) are by and by unveiling to us that the program has so neglected to meet desires in this way we should now extend it. We didn't think we required that. So when we conveyed that view to them… what we didn't predict was the response we therefore got from the IMF was that… if we don't expand then it is to a great degree far-fetched we would achieve the goals of the program so they will end the program today," he said.
The NPP government had in the past chastised the Mahama government for putting Ghana under the IMF program and ensured not to extend it after the program go in 2018 yet per the new assention the program will now end in April 2019.
IMF avowed an additional 94 million dollar apportioning for the growth which recommended that stop on government zone work will tend to.
A considerable measure of Ghanaians accordingly lashed out at the Akufo-Addo government for the one year advancement window. Regardless, shielding the issue on the Citi Breakfast Show, Mr. Kwarteng said government certified the expansion since "we might not want to hurt Ghana's dependable picture"
"… I for instance presumed that from what we had uncovered to them that we might not want to leave the program as though there is another organization and government had forsaken the program, it will send a wrong banner to the market and it will hurt our photo as a convincing country so we said we were not going."
He said the IMF furthermore incapacitated not to continue with the last quarter review of the IMF program with Ghana if the organization rejects the interest for a growth.
"That was in plain tongue that the IMF was uncovering to us that if you don't extend past first quarter of 2018, by then we feel that we are not by any methods going for the review," the Deputy Finance Minister included.
GHANA’S PROGRAMME WITH THE INTERNATIONAL MONETARY FUND (IMF)
- On Friday, 3rd April, 2015, the Executive Board of the International Monetary Fund (IMF) approved a 3-year Extended Credit Facility (ECF) Programme for Ghana.
- A total amount of SDR664.20 million (US$918 million) will be given to Ghana as balance of payments support over the 3-year period. The total amount will be disbursed in eight (8) equal tranches. The first disbursement was made immediately after the Executive Board approval of the programme.
- The remaining seven (7) disbursements will be made after the observance of the performance criteria and completion of reviews under the Programme.
Objectives of the Programme
- The objectives of the programme include to:
- restore debt sustainability and macroeconomic stability to foster a return to high growth and job creation through agriculture and infrastructure investment, while protecting social spending;
- strengthen the BOG’s monetary policy framework, while taking measures to ensure its full effectiveness; and
- rebuild external buffers.
- To achieve these objectives, a number of policies which are consistent with Government’s Home-Grown Policy and 2015 Budget are being implemented. These include tax and expenditure measures outlined in these documents.
- A number of ongoing and enhanced structural reforms, including new ones, will be implemented under the programme. The structural reforms are mainly in the areas of revenue administration, tax policy, public financial management, pay roll and human resource management, public sector reforms, debt management, and supervision and regulation of the financial system ...