Business News of Monday, 4 July 2022
Source: www.ghanaweb.live
2022-07-04Ghana likely to get about US$2 billion from IMF – Oppong-Nkrumah
The International Monetary Fund
Ghana needs to strengthen its domestic revenue mobilization, Oppong Nkrumah
Ghana in talks with IMF
IMF delegation to arrive in Ghana on July 6
Information Minister, Kojo Oppong-Nkrumah, has disclosed that the International Monetary Fund may dispense about US$2 billion to Ghana after deliberations have been concluded.
According to
Read full articlehim, Ghana’s quota and macroeconomic data are likely to help the country receive such funding from the Bretton Woods institution.
He noted that this will help in shoring up the country’s reserves and help service the country’s debts.
Speaking in a JoyNews interview, Oppong-Nkrumah said the Central Bank, for instance, may need $3 billion to boost its buffer.
“Already, you recall that the finance minister initially indicated that there were arrangements to get about $2 billion, out of which there is $1 billion available. Parliament has to approve for us to receive so that the cedi does not depreciate further."
“We have a shore up of our reserves to be able to meet the liquidity and debt servicing obligations even as our domestic measures will get better. You have the window to start talking to the Fund."
The Minister added, “Today [Sunday, July 3], I saw a document that said looking at Ghana’s quota and our macroeconomic data, we could get anything, maybe around $2 billion to help shore up what we are looking for.”
The minister notes that even though Ghana has turned to the IMF for a bailout, domestic revenue mobilization still remains key.
“We need to rally round and draw from various sources – capital market, the Fund, domestic resource mobilization.”
“Even when you borrow, you are going to serve it with domestic resource mobilization so the earlier we confront it, the better as well as the other challenges.”
President Nana Addo Dankwa Akufo-Addo has ordered the finance minister to begin formal engagements with the International Monetary Fund on financing for a government program.
This was disclosed by the Information Ministry on Friday, July 1, 2022.
Meanwhile, a team from the International Monetary Fund is expected to arrive in Ghana on Wednesday, July 6, 2022, to commence negotiations with the Government of Ghana on the modalities for a package to support Ghana’s economy.
SSD/FNOQ
