Is an IMF deal before the end of 2022 possible? – Bright Simons

The vice president of IMANI Africa, Bright Simons, has raised doubts about the government's intent to include at least the initial agreement it reaches with the International Monetary Fund (IMF) for the bailout it is seeking in the 2023 budget.

In a series of tweets shared on November 15, 2022, Simons intimated that there is no way the government will reach any agreement with the IMF before the end of 2022.

He said that the government had indicated that the fund (IMF) will be in Ghana to continue with negotiation before the 2023 Budget is read but this will not happen since the IMF will be in the country at the end of November.

He added that the process for a deal to be reached will take at least a month which means that an agreement can be reached only in 2023.

“Some may recall that senior govt officials informed the press of an IMF mission coming to Ghana last week to close negotiations for an "agreement in principle" before the budget reading. No mission came. No explanations were demanded by the press.

“And it isn't the 1st time the govt has used the press to push the idea of an overnight IMF deal in a misguided attempt at soothing investors. A deal was promised at the annual IMF mtg. Didn't happen. No accountability. Is that how to win investor trust?

“The IMF team is more likely to come end of Nov. Mission will last ~2 weeks. Staff report will take about 1 week to write… IMF Africa Dept has to review. IMF Fiscal Dept has to review. Before Staff agrmt can be drafted. Is a deal in 2022 realistic?” parts of the tweets read.

Bright Simons added that the lack of direction from the government will only mean that Ghanaians will be facing more hardships in the coming months.

Meanwhile, Majority Leader and Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, has assured that the 2023 Budget and Economic Statement of Ghana will be presented to Parliament before the constitutionally mandated deadline, November 30, 2022.

According to him, the budget could not be presented before November 15, as advised by the Public Financial Act, because of the ongoing discussions the government is having with the International Monetary Fund (IMF) for a bailout.

Speaking in a Neat FM interview monitored by GhanaWeb, Kyei-Mensah-Bonsu said that the budget is likely to be read in Parliament on November 24 because by then, the first stage of the IMF discussions will be completed, and the finance minister and the president, who are currently out of the country will be back.

View Bright Simons’ tweets below:

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And it isn't the 1st time the govt has used the press to push the idea of an overnight IMF deal in a misguided attempt at soothing investors. A deal was promised at the annual IMF mtg. Didn't happen. No accountability. Is that how to win investor trust?https://t.co/KJ7aXC1DRs

— Bright Simons (@BBSimons) November 14, 2022