“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability,” said Carlo Sdralevich who led the team to Accra.
According to Reuters, the IMF’s assistance with economic programme is expected to help Ghana to take care of its balance of payment deficits which currently stand at about $1 billion. It would also help the country to stem inflation which accelerated to 29.8% earlier this week.
These extreme fiscal challenges recently forced Ghana to reconsider its policy decision not to seek financial help from the International Monetary Fund (IMF). As Business Insider Africa reported last week, Ghana reversed the policy after it came to the realisation that its economic distress could only be helped by a multilateral lender such as the IMF.
Recall that Moody’s Investor Service and Fitch Ratings earlier this year downgraded Ghana’s credit rating. This led to Ghana being cut off from the global capital market, making it impossible for the country, thus exacerbating the country’s balance of payment deficit issues.
Part of the deliberations the Ghanaian officials had with the IMF team involved borrowing $1.5 billion to strengthen Bank of Ghana’s monetary policy, enabling it to build the much needed buffers that would help restore macroeconomic stability and debt sustainability.