Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed her joy and congratulated President Akufo-Addo on winning a rescue program.
She stated that the Fund is ready to assist the government in enacting changes to solve the country’s economic and financial difficulties.
“Congratulations to President Nana Addo Dankwa Akufo-Addo and his team on the approval by our Executive Board of a $3 billion IMF-supported program.”
“We stand with Ghana as it implements reforms to address the current economic and financial crisis and help build a better future for all Ghanaians,” she tweeted.
On Wednesday, May 17, the IMF officially granted Ghana’s Program request for $3 billion in Balance of Payments assistance to stabilize the economy.
According to the administration, the first tranche of approximately $600 million will be distributed throughout the country today, May 19.
The second tranche of payments is scheduled to be made in December 2023.
The $3 billion program aims to help Ghana’s economic restructuring program over the next three years.
The initiative is intended to alleviate the country’s fiscal and external imbalances, develop the banking sector, and encourage inclusive growth.
Ghana has had economic issues in recent years, including substantial public debt, a large fiscal deficit, and a rising current account deficit.
The COVID-19 epidemic, as well as the Russia-Ukraine war, have had a substantial influence on the economy, resulting in a sharp reduction in growth and a decrease in revenues.
As a result of this, the IMF has urged that the government implement steps such as eliminating tax exemptions.
Adjusting gasoline levies, and raising income taxes as part of its $3 billion support program to strengthen revenue mobilization.
According to the IMF Managing Director, the initiative is merely the first step towards restoring Ghana’s economic stability.
“Today’s decision is also a significant step forward for the G-20 common framework.”
The pledge of the Official Creditors Committee to assist Ghana in making its debt manageable was required for the Funds package to be approved, and it represents significant progress.
“The decision our board has made marks the beginning of the work we will do in collaboration with Ghanaian authorities to implement the program for the benefit of Ghanaians.”
The Ghana National Chamber of Commerce and Industry, on the other hand, has expressed its discontent with the IMF’s ideas.
The Chamber’s CEO, Mark Badu-Aboagye, stated that if the IMF’s conditions are enforced, firms will face even more difficulties.
“When externalities such as taxes, high-interest rates, and levies are introduced, the bottom line reveals that all of them are losing money, indicating that this component must be managed.”
“And that is where my concern is because these conditionalities will or may worsen that aspect of support that we need to give to businesses,” he emphasized.