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Former Finance Minister of Ghana, Seth Terkper, has predicted that the International Monetary Fund (IMF) Board will approve a support programme for Ghana by the end of May 2023. Fitch Solutions has also forecasted that the staff-level agreement between Ghana and the IMF will receive executive board approval in the second quarter of 2023.
The approval of an IMF support programme is expected to unlock critical financial aid, stabilise Ghana’s foreign exchange reserves, and improve investor confidence, according to Fitch Solutions.
Mr Terkper stated that Ghana could realistically expect to receive IMF support by May 2023 if the IMF’s review cannot be concluded by April 2023. He further elaborated that the IMF has fiscal economists whose mission is to examine fiscal developments and trends, both published and unpublished, about countries.
However, even if the prior actions are completed, and Ghana agrees to external debt restructuring, the entire document would have to be agreed upon by the government as it goes through the Africa Department, which is the regional department for Ghana.
Mr Terkper concluded that the document would be ready to go to the board for approval, and he believes that these are some of the considerations that may push Ghana towards an optimistic May 2023 approval date. Fitch Solutions may also have some intelligence suggesting the same.
Overall, Ghana is optimistic about the approval of the IMF support programme, and it is hoped that this will enable the country to recover from the economic impacts of the COVID-19 pandemic.
Source:locotvgh.com