The International Monetary Fund (IMF) Mission Chief for Ghana Mr. Stéphane Roudet, has said that the Fund is confident of the assurances given by the government to ensure election year spending is in line with the objectives of the $3 billion programme.
He recounted the number of times government officials including Finance Minister Dr Mohammed Amin assured that the programme would not be derailed by the election year spending.
Answering questions during a joint IMF, Ministry of Finance, Bank of Ghana (BoG) press conference in Accra on Friday, April 13 he said “Regarding election spending, the Minister of Finance has been clear about that acknowledging that past electoral cycles have not been conducive to keeping spending and keeping the fiscals on track or in check.
“But what do we see at the current juncture, I think what we see, if you look back, is a programme that is on track, targets that have been met, commitments that have been fulfilled and that gives us some comfort. At the same time if you look forward we had still have very strong commitment from the Ghanaian authorities to the programme’s objectives. You heard from the Minister as soon as he took office, he said very clearly his commitment to the programme objectives and we also heard that at all levels from the government, that also gives us great comfort.”
At the same press conference, the Minister for Finance, Dr Mohammed Amin Adam assured that sufficient control and monitoring mechanisms have been put in place to ensure key targets under the IMF programme are met, even though 2024 is an election year.
He said that the government remains committed to the effective implementation of the IMF programme and ensuring sustained growth and stability of the Ghanaian economy
Dr Amin Adam said “As we forge ahead, we remain committed to the effective implementation of the IMF programme and ensuring sustained growth and stability of the Ghanaian economy.
“With the support of all, we are confident to achieve our objectives and build a stronger and more resilient nation.”
He added “We have also put in place sufficient control and monitoring mechanisms to ensure key targets under the IMF-supported programme are met, even though 2024 is an election year”.
Governor of the Bank of Ghana (BoG) Dr Ernest Addison also assured the IMF that efforts are being made to ensure that the programme is not negatively affected in this year which happens to be an election year.
Dr Addison noted that in Ghana’s recent history, the country has not been able to successfully implement an IMF-supported programme in an election year without derailment.
But “the Government and the Central Bank are committed to changing that narrative.”
“We recognize the importance of continued macroeconomic stability and an early return to the capital markets, and we will remain committed to ensure that programme implementation stays firm,” he said during the joint press conference in Accra on Friday, April 13.
The country has already received two tranches, $600million each. The release of the third tranche would increase the total disbursements so far to US$1.56 billion.