IMF deal for Ghana by end of May 2023 not possible - Ato Forson

Minority Leader Dr Cassiel Ato Forson says it is impossibe for the Government of Ghana to secure a deal with the International Monetary Fund (IMF) in the second quarter.

The Government was hopeful of securing the deal at the end of May following an engagement with bilateral and multilateral partners at the recent IMF and World Bank Spring meetings in America.

But Dr Forson said the earliest the government can secure the $3 billion deal with the Bretton Woods Institution will be in the third quarter.

“I can confirm to you that it is not going to happen by the end of May, it is not going to happen, I will urge our Minister responsible for Finance to be truthful to the people of Ghana and be candid enough to say that yes, the timelines that we have, we said A, B and C but we cannot make it. The earliest is beginning 3rd Quarter, July August, that is the earliest,” Dr Ato Forson said in an interview with TV3.

His comment comes after Deputy Finance Minister, John Kumah, assured Ghanaiana at a press briefing that discussions towards securing the fund have been fruitful and the government was waiting for a bailout to balance the economy.

Government has already renegotiated its domestic debt and is hopeful of securing the Paris Club financing assurances within the shortest possible time.

The country’s economy could grind at a halt if the deal is not secured soon but analysts believe the government is to blame for seeking a bailout from the IMF late.

Currently, Ghana has secured a staff-level agreement with the IMF since December last year and now asking lenders to provide financing assurances which is a condition for the IMF’s board to sign off the programme.

The Chinese government which Ghana owes has given an ndication that it is willing to help Ghana secure the balance of payments bailout from the Fund.

The Chinese government has said it has an obligation to ensure the Ghanaian economy does not collapse.