Group Commends Ghana On IMF Extension
| Updated Sep 06, 2017 at 9:37pm
The Civil Society Platform on the International Monetary Fund (IMF) Program has commended Government and the Executive Board of the IMF for extending the country’s Extended Credit Facility (ECF) arrangement with the Fund by a year.
A statement signed by the Coordinator-Civil Society Platform, Godson K. Aloryito, in Accra on Wednesday said: “The Civil Society Platform believes the program extension is in the best interest of the country, as it will afford Government time to work towards attaining the overall program objectives of restoring debt sustainability and macroeconomic stability as well as foster a return to high growth and job creation, while protecting social spending.”
“Admittedly, the program extension in itself will not translate into successful completion unless the Government is committed to fiscal discipline and good governance,” the statement said.
It added that above all, “We believe effective implementation of the current arrangement with the IMF will strengthen the country’s own institutions of fiscal restraint, regain policy credibility as well as chart new sustainable pathways so that Ghana, hopefully, will no longer revert to the IMF for another Fund-supported program,” it said.
The IMF approved the extension during a meeting between the government of Ghana and the Executive Board of the Fund, last week.
In April 2015, the Ghana government signed a 918 US Dollar credit facility agreement with the IMF; the three-year arrangement under the ECF was in support of the country’s medium-term economic reform program.
Under the program, the IMF seeks to support growth and help reduce poverty by restoring macroeconomic stability through an ambitious and sustained fiscal consolidation, a prudent debt management strategy with improved fiscal transparency, and an effective monetary policy framework.
Secondly, the program foresaw a pick-up in economic growth, starting in 2016, supported by expected increases in hydrocarbon production.
Also, Lower inflation and interest rates, combined with a stable exchange rate environment that would help support private sector activity.
The program also projected that increased oil exports and lower oil imports on the back of domestic gas production will support the improvement in the current account, which together with the surpluses on the financial and capital account will help build up gross reserves to a more adequate level over the medium term.