The International Monetary Fund ((IMF) has granted some waivers to Ghana after its fifth and sixth review of the country’s economic performance under its programme with Ghana.
A statement from the Fund said during the review, adjustments were made to the programme to ensure that it remains on track and to enhance its prospects of success.
Despite this, the fund went ahead to disburse about 191 million dollars, bringing total disbursements under the arrangement to about 764.1 million dollars.
This, according to the fund was made to remain on track and also enhance its prospects of success.
Speaking to Citi Business News, the Head of Economics Department at the University of Ghana, Professor Peter Quartey pointed out that the fund normally grants such waivers when deviations are minor, and in cases where targets are narrowly missed.
“Sometimes we are close to meeting the target so when they see the effort towards meeting the target, they sometimes give those waivers. In this particular case, there was an issue of arrears which they thought we hadn’t met the target,” he said.
In the board’s review of Ghana’s performance, Acting Chair and Deputy Managing Director of the IMF, Mr. Tao Zhang stated that Ghana’s performance improved significantly in 2017.
He cited for example that, “Growth has rebounded, the fiscal deficit has declined, leading to a primary surplus for the first time in fifteen years, the external position has strengthened, generating a build-up of external buffers, and key steps have been taken to address fragilities in the financial sector”.
Prof. Quartey was of the view that the report by the IMF will improve Ghana’s ratings.
“The report itself is good for our credit ratings then it is good. When such a report comes with disbursement then it is good. Some of our donor partners are waiting to hear what the IMF will say. So I think it’s good for Ghana,” he stressed.
Ghana entered into a three-year programme with the IMF on April 3, 2015 for an Extended Credit Facility of about 955.2 million dollars over the period.
The programme among others aims to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana