Finance Minister Dr. Mohammed Amin Adam has announced that the IMF Board is set to convene on December 2, 2024, to review Ghana’s Third Programme. This meeting may lead to the release of $360 million to the Bank of Ghana, aimed at bolstering the government’s budget and addressing balance of payment requirements.
The upcoming board meeting follows a staff-level agreement made with the Ghanaian government earlier this month, during the IMF’s visit to evaluate data up to June 2024.
Dr. Amin Adam highlighted that this disbursement would increase the total funds received by Ghana since entering the IMF program to $1.92 billion.
During a press briefing in Washington, DC, at the Annual IMF/World Bank Meetings, Finance Minister Dr. Mohammed Amin Adam announced that Ghana has fulfilled all requirements for approvals and disbursements under the IMF program.
Economic Impact
Dr. Amin Adam expressed confidence that the expected $360 million from the IMF, alongside an additional $300 million from the World Bank, would bolster Ghana’s reserves and help stabilize the Ghanaian cedi as the country moves into the next year.
He emphasized that the Bank of Ghana already possesses robust reserves, and these forthcoming inflows will further empower the Central Bank to maintain stability in the currency.
Dr. Mohammed Amin Adam reassured businesses that there is no cause for alarm regarding the availability of foreign exchange to meet their needs.
He emphasized that the importance of the IMF funds extends beyond the financial aspect; it also signals to investors that the government is actively taking steps to stabilize the economy.
Investor Confidence and Economic Recovery
Furthermore, Dr. Amin Adam shared that meeting with investors in Washington, DC, during the IMF/World Bank gatherings yielded positive feedback. Investors expressed encouragement regarding Ghana’s economic reforms, indicating growing confidence in the country’s recovery efforts.
The Finance Minister highlighted that some investors are contemplating a return to the domestic bond market, but the ministry is carefully reviewing these requests before moving forward. In response to concerns about the government’s economic performance over the past four years, he emphasized, “Ghana’s economy is on a strong recovery path compared to its position two years ago. We’ve made substantial strides in economic growth, exchange rate stabilization, and controlling inflation.”
He further remarked, “Our economic management efforts have yielded remarkable results.”
The Finance Minister expressed optimism about the IMF’s updated growth forecast for Ghana, which has been raised from 3% to 4% for 2024.
“We appreciate the IMF clarifying that their latest World Economic Outlook reflects data up to mid-April 2024, with expectations for further improvement by year-end,” he stated.
Dr. Amin Adam voiced confidence, noting, “We believe Ghana can exceed the revised 4% growth target, thanks to recent investments that are beginning to deliver positive outcomes.”
However, he clarified that the government would retain its initial 3% growth projection in the 2024 Budget for now.
SOURCE: http://dew360.net
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