Vice Chairperson of the Finance Committee of Parliament, Patrick Yaw Boamah, says the IMF bailout approved for GThana forms part of efforts to help grow the economy.
At a meeting today [May 17, 2023] in Washington, the Executive Board of the IMF unanimously approved Ghana’s $3 billion programme over the next three years.
The Okaikwei Central MP said the potential impact of the Extended Credit Facility Arrangement on Ghana’s financial stability and economic growth prospects would be positive.
He claimed that “the banking sector clean-up, which cost over 22 billion, combined with the COVID-19 expenditure, as well as the Russian-Ukraine war, which increased freight costs astronomically, all contributed to our economic challenges. Given these difficulties, the government applied to the IMF for a bailout”.
In an interview with Kwabena Agyapong, the MP explained that the bailout was approved after the board received persuasive and credible presentations.
He stated that the government had begun new revenue measures such as growth and sustainability measures, as well as the implementation of new tax policies.
As part of efforts to keep Ghana on track, he stated that the government would continue to cut spending, spend prudently, reduce waste, and engage in activities that will help the economy grow.
He also explained that the IMF Board approval includes SDR 2.242 billion (about US$3 billion) 36-month ECF arrangement for Ghana.
This decision will enable an immediate disbursement equivalent to SDR 451.4 million (about US$600 million), he told the host.
He added, “The approval aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for a stronger economy. We also have a duty as a government to be on track and ensure that we achieve the target and aim for which we applied for the bailout”.