Ghana’s rising debts to dominate IMF review meetings

2548385890459_458447990162Measures to contain Ghana’s rising debts is set to dominate discussions as visiting IMF mission to Ghana engage government on the country’s performance under the programme.

Sources close the IMF team indicate that one area that will dominate review meetings that started on Wednesday October 21 are measures government is implementing to check its rising deficit.

Finance Minister Seth Terkper recently disclosed that Ghana’s debt is hovering around 70 percent of GDP.

Another issue that could also come up during these meetings will be the cost at which the recent Eurobond was issued as well as government revenue and expenditure figures – from July to September this year – and GDP figures.

The team, which is led by its mission chief to Ghana, Joel Toujas-Bernate, will be in the country for the next two weeks.

The IMF team is expected to also engage with various stakeholders of Ghana’s economy after which a press statement will be released on November 4. The press engagement would detail the team’s assessment of how Ghana performed during the two-week review.

If the team is satisfied with Ghana’s performance of how the country has managed the economy under the Fund programme, then it will recommend to its board in Washington D.C the release the third tranche of funds – some 116 million dollars – to Ghana.

At their last review meeting in September the mission raised issues with the level at which Bank of Ghana is funding to government operations.

Ghana in April this year agreed a three-year programme with the Fund that will see some 918 million dollars advanced to the country.


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