Business News of 2014-04-16

‘Era of tying tough conditionalities to financial support over’

International Monetary Fund (IMF) boss, Christine Largarde, has assured Ghana that the era where financial assistance came with tough conditionalities are no more.

There are reports that Ghana is likely to request for a financial support from IMF to mitigate the difficult economic times in the country. A weakening currency and a rising budget deficit are among problems that are lowering the country's growth trajectory and scaring off investors.

Minister of Finance and Economic Planning, Seth Terkper, has hinted of the possibility of an IMF bailout. For many Ghanaians, however, fears of a possible freeze on employment in the public sector, total suspension of subsidies on utilities and petroleum products still pose a threat.

But responding to a question posed by Joy Business at the IMF Spring Meetings in Washington DC, USA, Ms Largarde said Ghanaians need not worry. She said IMF plans to support proposals Ghana will put forward when policy makers request for financial assistance.

"We have changed in the way in which we offer our financial support. It's really on the basis of partnership...it's a new phase", she affirmed.