In a significant development, the International Monetary Fund (IMF) has expressed its willingness to renegotiate Ghana’s $3 billion financing program with President-elect John Dramani Mahama’s administration.
This move comes as Mahama, who won the presidential elections last weekend, has pledged to renegotiate the IMF package to smooth out the repayment of restructured loans and reduce the tax burden on corporates.
Ghana’s economic woes began in 2022 when the country’s debt ballooned to almost 100 percent of its gross domestic product.
The debt crisis led to inflation soaring to 54.1 percent, although it has since declined to 23 percent. The nation’s currency, the cedi, has also depreciated by about 60 per cent over the last four years.
In May 2023, Ghana embarked on a debt restructuring programme with the IMF, which aimed to restore macroeconomic stability and ensure debt sustainability.
Under the programme, the government was required to achieve a primary budget surplus of 0.5 per cent of GDP by the end of this year and a debt-to-GDP ratio of 55 per cent by 2028.
John Mahama, who previously served as President from 2012 to 2017, has vowed to prioritize stability over economic growth after taking office on January 7.
His administration is expected to renegotiate the IMF package to align with the National Democratic Congress’s (NDC) economic preferences.
Source: Dailyguide
