The new Mahama administration is considering seeking extra funding from the International Monetary Fund (IMF) to cushion Ghana’s economy.
This revelation was made by Finance Minister-designate, Dr. Cassiel Ato Forson, on Thursday, ahead of a meeting with an IMF team visiting Accra.
According to Dr. Forson, the government is committed to working with the IMF while exploring additional financing options with domestic and international partners. “We are committed to working with the IMF, but we also want to ensure that we can raise additional financing,” he stated.
To address the country’s economic challenges, the government plans to cut public spending to lower inflation and eliminate wastage in government operations.
Dr. Forson emphasized that “there is a lot of wastage in the system, and we will cut them.” This move is expected to help the government restart domestic bond issuance by mid-year.
Ghana, a leading producer of gold and cocoa, defaulted on most of its external debt in 2022, triggering a painful restructuring process. The Mahama government aims to conclude this process by finalizing agreements with non-Eurobond commercial creditors.
The government’s economic policies will be closely watched as Ghana seeks to rebuild an economy emerging from its worst crisis in decades. With the National Democratic Congress (NDC) holding a two-thirds majority in Parliament, the approval of Dr. Forson’s nomination as Finance Minister is expected to be smooth.
Source: OccupyGh.com
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