financial fix

Analysts say fiscal discipline needed following Ghana-IMF deal

By Jonas Nyabor

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Posted on May 18, 2023 13:49

 © International Monetary Fund. REUTERS/Yuri Gripas
International Monetary Fund. REUTERS/Yuri Gripas

Government will need to maintain radical economic reform to honour the arrangement with the IMF, say financial experts.

The IMF made a $600m payment to Ghana on Wednesday – the first of a $3bn extended credit facility (ECF) agreement between the government and the multilateral organisation.

But whether this will keep the IMF at bay for the long term will depend on adhering to strict fiscal measures to keep the country‘s debt in check.

This is the 17th arrangement between the IMF and Ghana since 1966.

“The [success of this] deal is dependent on Ghana living responsibly,” says Franklin Cudjoe, CEO of think tank IMANI Africa.

“This is not just about access to the international market to borrow again. It is essential to ensure that we keep our house in order,” he says.

James Dzansi, a country economist for the International Growth Center, says: “This [IMF deal] should give Ghana the encouragement to do the hard work because we have no other choice.

“We‘ve not been able to discipline ourselves in the past

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