Business News of 2014-05-09

No bail out request from Ghana – IMF

The International Monetary Fund (IMF) has clarified that it has not received any bailout proposal from the Ghana government.

This is in reaction to demands by the Trades Union Congress (TUC) for government to suspend moves for an IMF bailout to help solve the country’s current economic challenges.

The Ghanaian economy for months has been hit by critical challenges including; rising inflation, continuous depreciation of the Cedis and government is still struggling to reduce the budget deficit which is now over twelve percent to GDP. Inflation currently stands at 14 .5 percent the highest since February 2010.

Since the beginning of 2014, the cedi has depreciated by over 20 percent against the major foreign currencies the US dollar, British Pound and the Euro.

According to the director of IMF’s Communications Department Gerry Rice, “the Ghanaian authorities have not requested a new program from the IMF. The Board, discussed the Article IV review on Ghana on May the 5th, and we will have a press release on that in due course.”

The IMF says it will continue to consult with all major stakeholders in Ghana in developing country-specific programs.

Speaking at the IMF’s bi-weekly briefing with the press in Washington, D.C on Thursday, Gerry Rice added that “the IMF consults with a wide range of stakeholders, and in particular the Ghana team has had meetings with the Trade Union during its visits to Accra to exchange views on the country’s outlook and challenges.”

The Finance Minister Seth Tekper earlier hinted that the country may seek an IMF cover if it becomes necessary to lessen the current fiscal challenges.

Early on, the Managing Director of the IMF, Christine Lagarde downplayed assertions that a bailout programme from them could see Ghana go through another phase of hardship while the country tries to meet its strict conditionality in order to restore fiscal discipline and macroeconomic stability.

Source: Citifmonline.com
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