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The IMF's board of directors has completed the final review on Ghana ending the extended credit facility program.
It was after the IMF staff concluded the 7th and 8th exams earlier this year.
According to sources, the Council concluded the meeting on the completion of the Ghana program Wednesday in Washington DC, USA.
The approval, however, came with some concerns; as increasing debt, accelerating work on the Treasury's single account, budgetary discipline before the 2020 elections, balancing revenues and expenses in ways that do not harm the economy.
Impact or significance of this development
This does not mean that Ghana can or will leave the IMF.
However, this could mean that there would be no more restrictions and conditionalities that would have affected some of the government's programs to develop the economy.
We can also talk about these partial freezes on new jobs in the public sector such as the health and education sectors.
However, some also argued that some of the conditions were essentially aimed at stabilizing the economy. Therefore, if the government is really committed to fiscal prudence, nothing will really change after the IMF triennial program.
Government on the council meeting
Sources close to the government said they were optimistic about the success of the last meeting of the IMF's board of directors.
It's because of what they actually touched on or worked on the last three goals of the program, it should have happened before that board meeting.
The IMF proposed April 3 as the official date for Ghana to leave its program after almost four years of implementing several reforms.
After the completion of the IMF program
Some investors are worried about post-IMF fiscal discipline. But the government has given the firm badurance that several measures have been put in place and even laws such as the law on the management of public finances and institutions such as the budget council and the council of financial stability would support the search for prudence in terms of expenditure.
Background of the FEC Triennial Program
On April 3, 2015, the Board of Directors of the International Monetary Fund (IMF) approved a three-year agreement under the Extended Credit Facility (ECF) for Ghana for the first time. an amount equivalent to SDR 664.20 million (ie 180% of the quota or approximately $ 918 million). ) in support of the medium-term economic reform program of the Authority.
The program aimed at restoring debt sustainability and macroeconomic stability to support a return to strong growth and job creation while protecting social spending.
The Board's decision will immediately disburse 83.025 million SDRs (approximately 114.8 million USD).
The new program supported by the ECF, anchored in Ghana's shared growth and development agenda, aimed to strengthen reforms to restore macroeconomic stability and support stronger growth.
The main objectives of the program are to achieve a significant and anticipated fiscal adjustment while protecting priority spending, strengthening monetary policy by eliminating fiscal dominance, restoring external leeway and preserving the stability of the financial sector.
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