• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

IMF board approves disbursement of USD 116m to Ghana

01/09/2015
Reading Time: 4 mins read
0
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

The IMF board has approved the disbursement of 116 million dollars to Ghana.

This was after the board met today to review the country’s performance under the program.

Joy Business is learning that the board passed a satisfactory verdict on Ghana about how it has performed under the program.

This will aid the disbursement of the second tranche of funds to Ghana which is expected to hit Bank of Ghana account soon.

The review is first since the IMF approved Ghana’s three-year program in April this year.   

The 116 funds will also help prop up Ghana’s reserves to help stabilize the depreciating cedi, which is currently recording some gains against the US dollar. 

The IMF programme was seen as the trigger that will help turn around the economy and address the uncertainty issues facing it.

However, few months after the programme the economy is still facing numerous challenges, notable among them being a tumbling cedi.

The IMF program was secured in April this year for the release of 918 million dollars spread over three years to stabilize Ghana’s economy.

Below is an official statement from the IMF Board on the review:

IMF completes first review of Ghana’s ECF and approves us$116.6 million disbursement

The Executive Board of the International Monetary Fund (IMF) today completed the first review of Ghana’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement [1].

Completion of the review enables the disbursement of SDR 83.025 million (about US$116.6 million), bringing total disbursements under the arrangement to SDR 166.05 million (about US$233.1 million).

In completing the review, the Executive Board also granted waivers for the nonobservance of performance criteria regarding gross credit to government, and non-accumulation of external arrears, based on their minor and temporary nature and the corrective measures put in place by the authorities. The Executive Board also approved the authorities’ request for modifications of performance criteria.

Ghana’s three-year arrangement for SDR 664.20 million (about US$918 million or 180 percent of quota) was approved on April 3, 2015 (see Press Release No.15/159). It aims to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending.

Following the Executive Board’s discussion on Ghana, Mr. Zhu, Acting Chair and Deputy Managing Director, said:

“Implementation of the ECF-supported program by the Ghanaian authorities has been broadly satisfactory, despite an unfavorable economic environment. In particular, the government’s fiscal consolidation efforts are on track and it is encouraging that the government decided to liberalize the prices of fuel products, which bodes well for expenditure control, eliminating the need for fuel subsidies and the incurrence of arrears.

“The government should firmly continue with its fiscal consolidation efforts to fully restore macroeconomic stability and mitigate financing risk. In this regard, it is crucial to continue the policy of controlling the wage bill by adhering to the net hiring freeze, excluding for health care and education, while further implementing the payroll clean-up plan. The government should continue to adhere to the domestic arrears clearance plan and avoid incurring any new arrears. Implementing structural reforms to strengthen expenditure control will support these efforts. At the same time, the government should use the resulting fiscal space to enhance its social protection programs to mitigate the potential impact of the fiscal consolidation on the poor.

“To avoid the risk of fiscal overruns in connection with next year’s election, it is imperative to identify the full cost related to the elections as early as possible and provision for it in the 2016 budget, while ensuring that the fiscal targets will be achieved. It is also important that the ongoing wage negotiations result in a wage agreement consistent with the medium-term wage bill envelope. Further enhancing revenue performance will also be key for continued fiscal consolidation.

“The government’s medium-term debt management strategy is a welcome step to help reduce near-term financing risks. The externally-oriented financing envisaged in 2015 will help reduce the pressure on the domestic debt market. However, the government should complement this strategy by striving to deepen the domestic debt market, as well as by seeking to borrow externally on concessional terms as much as possible.

“The monetary policy stance will have to remain tight to help bring inflation down, against the background of exchange rate volatility. Bank of Ghana (BoG) should stand ready to tighten monetary policy further if inflationary pressures do not recede as expected. The decision to introduce new liquidity management instruments is encouraging, as it will improve monetary policy transmission and make the inflation targeting framework more effective. Moreover, prompt implementation of two new banking laws currently under review by Parliament will help safeguard financial sector stability.”

[1]The ECF is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems.

 

Source: Joy Online

Previous Post

9 Things Warren Buffett Says You Should Do to Be Happy and Successful

Next Post

How mPedigree built a business by combating counterfeit products

Related Posts

carbon emissions

Ghana Begins Receiving Payments for Reducing Carbon Emissions in Forest Landscapes

30/01/2023
Employers and employees

The silent war between employers and employees will have no winner 

27/01/2023
Electric cars in Africa, ghanatalksbusiness.com

Africa’s push for electric vehicles

24/01/2023
Functioning dddress system, ghanatalksbusiness.com

The next “AMAZON” in Africa will need a Functioning Address System

23/01/2023
Catalyst fund, ghanatalksbusiness.com

Catalyst Fund announces $2 million investment into 10 startups accelerating Africa’s adaptation and resilience to climate change

20/01/2023
shifts in globalisation

Globalisation Redefined as Manufacturing Moves Closer to Home

20/01/2023
Next Post

How mPedigree built a business by combating counterfeit products

Leather Profits - Why You Should Not Overlook This Business Opportunity In Africa

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2021 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2021 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In