Business News of Mon, 31 Aug 201519
IMF reviews Ghana’s performance for possible release of $114 million
The IMF Board is expected begin meeting Monday to find out how Ghana has fared under the three-year bailout programme.
The review - the second since the deal was struck - is seen as crucial because if Ghana secures the board’s approval, it will pave the way for the release of some 114 million dollars from the Fund to support the country’s import bill.
The funds will also help prop up Ghana’s reserves to help stabilize the depreciating Ghana cedi.
Government will be hoping secure the IMF’s approval as that would also convince donors and investors that it is committed to implementing targets set out under the programme.
Ghana secured a pass mark from the Fund when the board carried out its first review in June.
However some economists fear that the recent depreciation of the cedi will work against a favourable mark from the IMF, but Deputy Finance Minister Mona Quartey says the cedi fall will not affect Ghana’s performance rating.
“I am confident that we will continue to get pass marks as we go along because the fiscal consolidation process is going very well”, she said.
If the IMF Board finds Ghana’s performance favourable, the 144 million dollars could hit Bank of Ghana’s account in the second week of September.
The IMF programme was seen as the trigger that will help turn around the economy and address the uncertainty issues facing it.
However, few months after the programme the economy is still facing numerous challenges, notable among them being a tumbling cedi.
The IMF program was secured in April this year for the release of 918 million dollars spread over three years to stabilize Ghana’s economy.