IMF Board announces end-March of Ghana's final review of program before release



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The International Monetary Fund (IMF) has set March as the end of its review by the Board of Directors of its last review of Ghana's program before approving its exit.

A pbad would be complete the program on April 3, 2019.

It was after the Ghana Fund Mission Completes Discussions with Government what could be described as the final review of staff on Ghana's expanded credit program.

And after the Executive Council meeting on Ghana

If Ghana succeeds the handset 7th and 8th An extended credit facility by the end of March would result in the release of the Fund's last tranche of cash of approximately $ 188 million, bringing the total disbursements under the program to approximately SDR 664.20 million ($ 920.58 million).

Situation of the extended credit facility for Ghana

According to the IMF mission led by Annalisa Fedelino, the government has made "good progress in implementing the program supported by the extended credit facility, which will end on April 3." 2019as expected ".

The IMF noted that six of the nine quantitative targets set in the program by end-December 2018 had been met and structural reforms were progressing.

Details of the IMF visit to Ghana

The IMF mission at the end of its visit to Ghana noted thatDomestic revenue mobilization must remain a key priority to create fiscal space and reduce public debt. The mission added, "The authorities should continue their efforts to implement fiscal policy measures, in particular tax exemptions and tax compliance measures".

On monetary policy, they were of the view that the Bank of Ghana should remain cautious and complement fiscal adjustment efforts to maintain entrenched inflation expectations.

Ghana's economy

The Fund has described economic performance over the period period as favorable despite a less favorable external environment for border economies. Real GDP grew 6.7% in the first three quarters of 2018. In the medium term, growth is expected to remain strong, reinforced by recent oil discoveries.

Despite this good verdict on the economy, staff was of the opinion that the economy had experienced some pressure in the second half of 2018, mainly due to the rebalancing of portfolios by foreign investors in the context of the economy. A stronger dollar, higher US interest rates and emerging market volatility, resulting in lower external buffers.

People engaged during the mission visit

The mission visited Accra from 12 to 21 February to discuss the 7th and 8th exams and met Vice President Mahamudu Bawumia; Minister of Finance Ken Ofori-Atta; Ernest Addison, Governor of the Bank of Ghana, as well as other senior officials, as well as representatives of the private sector, civil society and development partners.

Government's financial commitment after the program

According to staff, he reached an agreement with government on economic policies aimed at preserving macroeconomic stability, improving the monitoring of fiscal risks and strengthening external buffers.

The staff was in sight that the The authorities have demonstrated a strong commitment to financial stability, with the resolution of nine banks over the past two years, which will help improve medium-term economic growth prospects.

The global financial system is sufficiently capitalized and well positioned to support credit growth and future investments. The Bank of Ghana is implementing reform measures to address persistent weaknesses in the financial sector.

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