Wednesday, 07 June

US$3bn IMF deal 'not just about the money'; 'helping to reset dislodged economic fundamentals matters most' – BoG Governor

Dr Ernest Addison, Governor of the Bank of Ghana (BoG)

The US$3 billion approved IMF-supported programme for Ghana "should not be seen just about the money alone," Bank of Ghana Governor Ernest Addison has said. 

At a joint press conference in Washington, Dr Addison said while the money (the project support that comes with the approval) helps with the current reserves profile for the central bank, "what matters most is the fact that the programme sets out a set of policy and structural reforms that should help Ghana to reset economic policy fundamentals which was dislodged by the crisis over the last year or so."

Dr Addison said: "These deep-seated reforms should re-anchor policy and embed irreversibility in our policy outcomes and ensure that pathways are rebuilt to make our economy more resilient." Secondly, he said, "this is now the time to begin the work."

The programme approval, he noted, "is just the beginning of the real work of building Ghana later."

And, thirdly, he added that "if you look at the time frame within which Ghana secured," the Fund's Executive Board approval, "it’s unquestionably" down to the government’s "strong political will and commitment to their reform agenda".

He said it is also a result of the "painful sacrifice of Ghanaians, especially through some of the measures, such as the Domestic Debt Exchange, which have also helped us reach these conclusions very quickly."

"So, we have reached the point where key stakeholders should come through very quickly with their support to give meaning to the catalytic role of the Fund and help build Ghana better," Dr Addison urged.

He observed: "We see here, a clear demonstration of burden-sharing, including macro and structural reforms, and the domestic debt restructuring."

"We’re looking forward to continuing to count on an expedited process to conclude the remaining negotiations on extending debt restructuring to ensure that Ghana quickly gets the full benefits and complements of these reforms to underpinning the policy, resetting agenda," he mentioned.