The team from the International Monetary fund (IMF) will today conclude negotiations with Ghana on a programme that is expected to get Ghana out of its current economic challenges.
The IMF team has been in the country since last week Tuesday.
Citi Business news has gathered the programme may be a three year one and will begin in January 2015.
2014 has been a challenging year for Ghana.
The year begun with the cedi entering a free fall mode.
By the end of January, the local currency had depreciated by 8%.
The central bank stepped in on February 4 with a set of revised and new foreign exchange rules.
But the rules did not have the expected impact on the cedi.
Governor of central bank, Dr Henry Wampah tells Citi Business News there were implementation challenges.
‘There were implementation challenges, people didn’t understand the issues, there were even some misapplications, so we thought the best thing for the country will be if we reverse the rules’
Then there were the budget overruns and a huge budget deficit worsening the country’s challenges.
The wage bill went beyond manageable levels resulting from the implementation of the single spine salary structure.
Revenues declined, with a hold on funds by donor partners while inflation hit a 4 year high now at 15.9 percent.
This coupled with many other challenges pushed government to seek help from the IMF.
The Trades Union Congress had warned government to desist from the move.
Its Secretary General, Kofi Asamoah threatened the union will resist any move by government to go ahead with a program that will lead to job cuts in the public sector.
In a bid however to deal with the matter government together with persons from some selected sectors of the economy between May 13th-15th, met in Senchi for the national economic forum.
A number of strategic recommendations were made there in what became known as the ‘Senchi Consensus’.
The move to go to the IMF was also recommended there.
On 8th August, Ghana made a formal request to the IMF for a programme.
On the 16th of September, the IMF team begun negotiations with Ghana.
It is unclear the details of the discussions but Finance Minister Seth Tekpe indicates the recommendations from the national economic forum will be used to make a strong case for Ghana.
President Mahama has also indicated the programme may be for 3 years and may start in January 2015.
Meanwhile a deputy Finance minister Mona Quatey tells Citi Business News government will soon issue a communiqué on the negotiations soon.
By: Anim Kwaku Boadu/citifmonline.com/Ghana
