Given the chronology of Ghana`s relationship with the IMF – and the cycle of achieving goals under its programmes before resorting to bad habits – most people think it is only a matter of time before the country asks the IMF for help again. The likelihood of this happening is increased by the fact that the country goes to the polls in 2020. This means that there will inevitably be a tendency for the government to spend too much. The changes that the IMF intends to make may be more radical than the people of Ghana are willing to stay. One of the biggest cuts they plan to make will be on private sector wages, which 70% of government revenues were hit in 2012. Another area of reform must be fuel subsidies, which have significantly weakened the government`s ability to levy taxes on one of its major industrial sectors. This, combined with lower commodity prices, resulted in a public debt of 10.1% in 2013 and a public deficit of more than 50% of GDP. 📬 start each morning with the coffee and the Daily Brief (BYO coffee). These quotes capsule how Ghanaians feel about the relationship. But is the relationship so bad? An in-depth assessment requires some context: how Ghana relates to all the Bretton Woods institutions. A historical assessment of this relationship with the IMF will help to better contextualize the nature of Ghana`s relationship with the IMF. Ghana then entered another IMF-supported stabilization programme, the 16th since independence, after missing targets in 2013 and 2014.
On April 3, 2015, the IMF approved a three-year agreement on an expanded credit facility with Ghana. The aim was to restore debt sustainability and macroeconomic stability to encourage a return to high growth and job creation, while protecting social spending. The program has been extended for an additional year, ending April 2, 2019. saharareporters.com/2014/10/14/ghana-begins-final-round-talks-imf-bailout-loan “Governments have made significant macroeconomic gains during the FEF-supported programme, with growth rising, inflation at the figures, fiscal consolidation and consolidation of the banking sector. Continued macroeconomic adjustment should underpin these improvements when the 2020 elections are launched. In early 2015, Ghana approached the IMF for a $918 million loan to stabilize the economy. IMF advisors, in cooperation with the Ghanaian government, have developed a three-pronged programme: the Executive Directors have approved the content of the staff assessment. They commended the Ghanaian authorities for their strong macroeconomic performance and laid the foundations for sustainable and more inclusive growth. In the context of external risks and the upcoming elections, the Directors stressed that significant challenges remained, including the anchoring of prudent macroeconomic policies, debt sustainability and the implementation of structural reforms necessary to successfully implement the authorities` Ghana beyond Aid programme and reduce poverty and inequality.