Ghana likely to secure IMF board approval by first quarter of 2023 – Fitch Solutions

International rating agency, Fitch Solutions, has stated that an IMF board approval for Ghana’s economic recovery programme may be in by the first quarter of 2023.

A Senior Country Risk Analyst at Fitch Solutions, Mike Kruninger, said “the first thing I should say is that the IMF Executive Board approval will happen in the coming weeks,” according to myjoyonline.com reports.

However, with the country’s current inflation rates and economic downturns, he no noted further delay in the approval from the Board will result in the further weakening of investor sentiments.

“So, in the first quarter of 2023, should this not happen, we will be expecting investor confidence to remain rather weak in the coming months which will put additional pressure on the exchange rate. So, in that case, the currency will depreciate furthermore significantly than we currently anticipate,” he explained.

Mr. Kruninger added, “so what will happen in that instance is inflation will remain much higher for much longer. And this will then weigh on incomes, it will weigh on overall private sector activities.”

“So, in this instance, the economic wealth will become much weaker than the 2.9 percent that we are currently forecasting,” he stated.

According to a January 2023 Sub- Saharan Africa Macroeconomic Update, the progress made by the country in the debt exchange programme, a key requirement by the IMF has been lauded and is an indication of the country’s chances of getting the Fund’s support.

Ghana is seeking $3 billion in financial support from the International Monetary Fund to shore up its reserves and boost its balance of payments.

SSD/FNOQ