Ghana: In Parliament, Nana Akufo-Addo confirms her intention to stop using IMF assistance this year

Boubacar Diallo

On the occasion of his second speech on the state of the nation, delivered this Thursday before the parliament, the President of Ghana, Nana Akufo-Addo (photo), confirmed his intention not to resort to the assistance from the International Monetary Fund (IMF) under the current three-year economic and financial program supported by the Extended Credit Facility (ECF).

“I am pleased to announce that the program supported by the extended credit facility that began in 2015 and which is supported by the IMF will end this year,” he said. Adding that “the relatively good macroeconomic performance in 2017 will strongly support the success of this program”.

Continuing, Nana Akufo-Addo said: “We are determined to put in place measures to ensure irreversibility and maintain macroeconomic stability, so that we have no reason to seek the assistance of this powerful world organization again. “.

With this announcement, the Ghanaian President maintains his position on the IMF, since his accession to power, in December 2016. Nana Akufo-Addo had announced in July 2017, that he did not count extend the triennial economic and financial program with the IMF beyond April 2018.

As a reminder, the three-year economic and financial program supported by an extended credit facility between the IMF and Ghana was approved on April 3, 2015. The initial three-year program, which amounts to 664.20 million SDRs (approximately $ 918 million or 180% of the quota at the time of arrangement approval) was, however, extended for one year in August 2017.

The objective of the program is to restore debt sustainability and macroeconomic stability in the country, to support a return to strong growth and job creation while protecting social spending.

Thus, after a 2016 year in which the country’s growth was 3.5%, the lowest level in two decades, the IMF expects a return to stronger growth in 2017-18. In particular because of the increase in oil production, the drop in inflation and the drop in imbalances with the good implementation of policies by the Ghanaian authorities.

For her part, Nana Akufo-Addo said that the Ghanaian economy is now doing better under the leadership of her government. “I am pleased to report that the economic management team, under the leadership of the brilliant economist, Vice President Mahamudu Bawumia, has taken up the challenge. And hard work begins to produce positive results, “he said.

Adding that “we have increased our international reserves, maintained the relative stability of the exchange rate, reduced the debt-to-GDP ratio and the rate of debt accumulation. We have paid nearly half of the inherited arrears and, most importantly, we are up to date with our obligations to statutory funds. “

“We have reduced taxes, we are reducing inflation and interest rates. Economic growth is increasing, from the alarming rate of 3.5% in December 2016 to 7.9% in our first year [2017, Editor’s note]. And everything suggests that it will be even better this year, “said the Ghanaian president.

On the occasion of his second speech on the state of the nation, delivered this Thursday in parliament, Ghana’s President, Nana Akufo-Addo (photo), confirmed her intention not to resort to assistance. of the International Monetary Fund (IMF), following the current three-year economic and financial program supported by the Extended Credit Facility (ECF).

“I am pleased to announce that the program supported by the extended credit facility that began in 2015 and which is supported by the IMF will end this year,” he said. Adding that “the relatively good macroeconomic performance in 2017 will strongly support the success of this program”.

Continuing, Nana Akufo-Addo said: “We are determined to put in place measures to ensure irreversibility and maintain macroeconomic stability, so that we have no reason to seek the assistance of this powerful world organization again. “.

With this announcement, the Ghanaian President maintains his position on the IMF, since his accession to power, in December 2016. Nana Akufo-Addo had announced in July 2017, that he did not count extend the triennial economic and financial program with the IMF beyond April 2018.

As a reminder, the three-year economic and financial program supported by an extended credit facility between the IMF and Ghana was approved on April 3, 2015. The initial three-year program, which amounts to 664.20 million SDRs (approximately $ 918 million or 180% of the quota at the time of arrangement approval) was, however, extended for one year in August 2017.

The objective of the program is to restore debt sustainability and macroeconomic stability in the country, to support a return to strong growth and job creation while protecting social spending.

Thus, after a 2016 year in which the country’s growth was 3.5%, the lowest level in two decades, the IMF expects a return to stronger growth in 2017-18. In particular because of the increase in oil production, the drop in inflation and the drop in imbalances with the good implementation of policies by the Ghanaian authorities.

For her part, Nana Akufo-Addo said that the Ghanaian economy is now doing better under the leadership of her government. “I am pleased to report that the economic management team, under the leadership of the brilliant economist, Vice President Mahamudu Bawumia, has taken up the challenge. And hard work begins to produce positive results, “he said.

Adding that “we have increased our international reserves, maintained the relative stability of the exchange rate, reduced the debt-to-GDP ratio and the rate of debt accumulation. We have paid nearly half of the inherited arrears and, most importantly, we are up to date with our obligations to statutory funds. ”

“We have reduced taxes, we are reducing inflation and interest rates. Economic growth is increasing, from the alarming rate of 3.5% in December 2016 to 7.9% in our first year [2017, Editor’s note]. And everything suggests that it will be even better this year, “said the Ghanaian president.

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