John Mahama, the leader of the National Democratic Congress (NDC), called Ghana’s return to the IMF for a US$3 billion extended credit facility agreement the butt of jokes.
He claims that Ghana’s request for IMF assistance proves that President Nana Addo Dankwa Akufo-Addo‘s campaign slogan, “Ghana Beyond Aid Agenda,” is nothing more than empty words.
Mahama said during the Special Guest of Honor at the 7th Ghana CEOs summit “Indeed our return to the IMF – cup in hand – has made our Ghana Beyond Aid policy the butt of jokes amongst many commentators in the world.”
It will be necessary, he said, to be able to decide on economic policies that put the welfare of our citizens first and foster an environment that advances sustainable growth and development for job creation.
The Extended Fund Facility will be used to spread out the 36-month program, which was approved by the IMF board.
It aims to establish debt sustainability and macroeconomic stability again while also implementing extensive reforms to increase resilience and lay the groundwork for faster, more inclusive growth.
Managing Director Kristalina Georgieva said “Fiscal consolidation is a central element of the programme” as is “preserving financial sector stability”.
Additionally, the program’s monetary and exchange rate policies will put an emphasis on reducing inflation and replenishing foreign exchange reserves.
Weakened by the effects of the conflict in Russia-Ukraine, Ghana turned to the IMF and, in December, reached a pre-agreement with the organization under which it would receive $3 billion in loans over three years, subject to the adoption of economic reforms.
The worst crisis in decades has compelled President Nana Addo Dankwa Akufo-Addo to change course and turn to the IMF in order to avert the threat of default that some economists have raised.
The Bank of Ghana’s account has received the initial payment from the IMF to support the nation’s payment balance.
The first tranche was received in part by Friday, May 19, 2023, with the remainder to be paid out by June 2023.
