Skip to main content

New date for Govt., IMF discussions

Government is now looking at a program with the IMF by the end of March.

President Mahama disclosed this in an interview with the Reuters news agency. This is the second time the President has moved the date forward. But does this give credence to concerns that Ghana is likely to get financial assistance from the Fund, by the second quarter of this year?

It is however not clear what has changed or influenced the President's decision to push the date forward after announcing earlier this year that the program could be finalized by January.

Following that announcement, Joy Business also spoke to the leader of the Ghana team negotiating with IMF, Professor Kwesi Botchwey, who maintained that the program with the Fund should be finalised by February ending.

Nonetheless, for industry watchers who have been following the negotiations, the new date by the President could be difficult to meet, because of some concerns that the IMF and the European Union (EU) have raised.

The IMF and the EU are requesting a detailed plan on how to mitigate the impact of the declining crude oil prices on government's revenue and how some 2 billion expected loss or hole in government revenue can be filled.

Also, they want to see a hold on hiring of new personnel to the public sector, and an aggressive programme to address data issues on government's payroll.

Further, they are requesting a revised 2015 budget, a limit on the amount of money the Bank of Ghana can lend to government and reduction in inflation.

According to the country's development partners, all these issues must be addressed before a programme can be finalised.

This means for the president's revised date to be viable, most of these issues must be addressed quickly.

Joy Business has also gathered that normally it takes about six weeks for the IMF Board to work on a country's report, so even if everything is concluded by the end of February, a programme will only be possible in April.

For many analysts any delay in securing a program with the IMF could have serious implications for the economy, especially to the stability of the cedi.

Ghana is hoping to secure about $1 billion from IMF under a three-programme for balance of payment support.

Credit: Myjoyonline


Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…