31 August 2017

IMF confirms extension of Ghana’s programme

Government has reached an agreement with the International Monetary Fund (IMF) to extend the Credit Facility programme by a year.

This follows a conclusion of an assessment of the fourth review of the Extended Credit Facility by the IMF board.

The IMF announced the extension in a statement.

The announcement by the IMF contradicts government’s earlier stance that it would not extend the program which was expected to be terminated by the end of 2018.

It is recalled that the President during the recent meet the press series said that government will not extend the program when it expires.

However, following the latest review, the IMF approved a 94 million dollar disbursement and program extension.

Ghana in 2015, entered into an agreement with the International Monetary Fund for economic assistance.

The deal concluded with a funding support of 918 million dollars to be disbursed under eight tranches.

Some key issues that have dominated the signing of the agreement include the freezing of public sector employment, reducing the budget deficit, zero financing of the budget deficit by the Bank of Ghana.

Senior Minister, Yaw Osafo Maafo at his vetting indicated that the NPP government will review the deal.

The IMF had also asserted that it would consider a possible extension of the deal should government make any official request to that effect.

The Finance Minister, Ken Ofori Atta however maintained that the government is committed to ending the program in 2018.

By: Fred Djabanor/citifmonline.com/Ghana

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