Ghana committed to enhancing public expenditure controls – IMF resident Rep.

The Resident Representative of the International Monetary Fund in Ghana, Dr. Leandro Medina, has said government will make efforts aimed at enhancing public expenditure commitment controls as the country prepares to reach a Board-Level Agreement with the global lender.

In an interview with Graphic Online, the IMF resident representative said the government of Ghana aims to improve its fiscal transparency, strengthen management of public enterprises and tackle structural challenges particularly in the energy and cocoa sectors.

“The authorities are also committed to further bolstering governance and accountability,” Dr Medina said.

As part of measures to address exchange rate challenges and monetary policies, the IMF representative said the Bank of Ghana would continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers.

He further added that reducing inflation, enhancing resilience to external shocks and improving market confidence will be prioritized as part of Ghana IMF’s programme.

“As part of the authorities’ debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved. We will be able to share more details publicly once the programme has been approved by our board, followed by the publication of the related documents,” he disclosed.

Dr Leandro Medina was appointed in September 2022 to assume responsibility as IMF resident representative for Ghana. He took over from Dr Albert Touma Mama following the end of his mission.

Ghana on December 13, 2022 secured a Staff-Level Agreement with the fund for an amount of $3 billion under an Extended Credit Facility. As part of the deal, government has announced plans to undertake a Domestic Debt Exchange Programme.

Under the programme, government is inviting domestic bondholders to voluntarily swap their bonds for fresh ones. It is targeting approximately GH¢137.3 billion of principal amount, outstanding of certain domestic notes and bonds issued by the government.

MA/FNOQ