IMF makes adjustments to Ghana’s bail-out programme

The International Monetary Fund (IMF) has been forced to make adjustments to the three-year extended credit facility to Ghana.
This was revealed after the third review on Wednesday, September 28.
The successful review enables the disbursement of $116.2 million to Ghana, bringing the total disbursements to $464.6 million.
But the IMF mission admitted that waivers were granted by the Fund’s Executive Board after the nation clearly missed some of the programme’s targets.
“During the review, adjustments were made to the program to ensure that it remains on track and to enhance its prospects of success,” IMF stated on its website.
Deputy Managing Director of the Fund Tao Zhang rated the programme so far as “broadly satisfactory, but the economic outlook remains challenging”.
“There has been progress in stabilizing the macroeconomic situation and reducing financial imbalances, but fiscal risks remain elevated,” Mr Zhang added.
He admonished that further efforts are invested in addressing revenue shortfalls “while expenditure control measures should be fully enforced to contain the wage bill and other current spending”.
He cautioned authorities on Eurobonds, stressing that consideration to costs and debt sustainability should be minded.
Ghana reached a three-year deal with IMF in April, 2015 after government wrote to the Bretton Woods institution for a programme to boost investor confidence in the economy.
In all, $918 million is expected to be disbursed.

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