An Economist and a lead researcher at the Ghana Commercial Bank Capital, Mr Courage Boti is optimistic that the interest being shown by the International Monetary Fund (IMF) to save Ghana’s economy will boost investor confidence in the country.
The Ministry of Finance on Monday confirmed that its officials and of the Bank of Ghana have commenced a comprehensive debt sustainability analysis with the International Monetary Fund (IMF) for a US$3 billion support programme.
The statement issued by the Ministry explained that the programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability, underpinned by key structural reforms and social protection.
The IMF team is in Ghana until October 7 to continue discussions with the government on policies and reforms that could be supported by a lending arrangement.
This round of engagements coincides with international rating agency Fitch downgrading the country’s creditworthiness to further junk status, in addition to the already existing problem of inflation and cedi depreciation.
This has heightened calls for the government to among other things, restructure its local currency debt stock as required by the IMF.
News reports indicate that major local investors, including local banks and pension funds, are preparing to engage in discussion on the debt reorganization.
Reacting to this development on the Jolly Breakfast Show on Skyy Power FM this morning Courage Boti is hopeful these steps being taken by the IMF to save Ghana’s dying economy will spice up investor confidence in the country.
“IMF is a multinational institution and a lot of countries rely on them as the go-to source when it comes credibility and information on any country and so when they are behind you and supporting you to correct the micro imbalances they give you credibility.”
“The IMF will ensure you are doing the right thing, you are ensuring your budget within check and not exceeding it when they are in town, they instil discipline.” Mr Boti added.
Source: Patrick Ennimi