IMF
IMF

Ghana has officially concluded its international Monetary Fund (IMF) supervised economic restoration program, a release received here on Thursday said.

The Executive board of the IMF therefore approved of the release of the last tranche of 185.2 million US dollars support fund to the country.

Ghana signed on to the IMF program in April 2015 after fiscal over-runs in 2012; ballooning public debts and currency depreciation left the country’s economy in dire straits with a crippling power shortage allowing very little room for economic activity.

The arrangement was therefore aimed to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending..

“The authorities have achieved significant macroeconomic gains over the course of the Extended Credit Facility (ECF)-supported program, with rising growth, single digit inflation, fiscal consolidation, and banking sector clean-up,” Zhang Tao Deputy Managing Director of IMF and Acting Chair said in a statement.

He added that the Ghanaian authorities had continued along the path of macroeconomic adjustment which he was confident should underpin these improvements, as the 2020 elections approach.

Although the IMF supported program was billed to run for three yearsGhana seciured a one year extension in August 2017 at the instance of the Nana Addo Dankwa Akufo-Addo led New Patriotic Party (NPP) government which came to power in January 2017, almost two years after the program had commenced.

Zhang commended the authorities for demonstrating their commitment to fiscal discipline by meeting the deficit targets for 2018.

“Progress on structural reforms needs to be intensified as well as plans to improve public financial management and supervision of state-owned enterprises (SOEs)

“The establishment of a fiscal council and the fiscal rule are welcome. Stronger monitoring of fiscal operations, including for SOEs, will help mitigate fiscal risks,” he added.

Considering the resolve of authorities to tackle difficult reforms, the executive board of IMF also approved request by the Ghanaian government for a waiver of the nonobservance of a few program targets.

The last disbursement brought the total financial support received by the West African country from IMF under this program to 664.20 million Special Drawing Rights (SDR ) or about (about 925 million dollars. Enditem

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