Extension of IMF program due to NDC’s failure to meet set targets

Sources at the Ministry of Finance have told PrimenewsGhana the present administration’s decision to extend current dealing with the IMF due to the previous government’s failure to meet key indicators set as part of the package signed between Ghana and the lending agency. 

President Nana Akufo –Addo in an interaction with journalists at the presidency revealed the program will not be extended, once it ends. He was emphatic “there is no question of the IMF being extended, It will end as agreed in April 2018.”

His comment followed concerns by some analysts the program may be extended beyond the stipulated deadline, something the fund managers had requested the government takes up. 

Finance Minister Ken Ofori-Attah at a Spring meeting in Washington was confident the deadline will be met, because of the strong measures put in place. 

“We are confident that we will meet the targets that we have set this year, and remember that the FUND will be with us, as we work through the 2018 budget, and we are truly committed to ending the program in April 2018.” 

But a statement from the fund said the program will be extended and will most likely end by the first quarter of 2019.

“IMF executive board today completed the fourth review of the arrangement under the Extended Credit facility”.

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The completion of the fourth Extended Credit Facility review means the government is likely to secure an amount of $94 million, bringing the total disbursement of funds disbursement to the $565.2 million, while the remaining will be given out following further reviews. 

The extension has called into question the government’s own credibility but one of the sources say the government had to yield to the review due to the failure of the previous NDC administration’s failure to meet some of the indicators, especially fiscal ones. 

Though government was willing to pull out of the deal, the fund managers considered that as a sign of bad faith and implored them to stay and complete the entire review. 

“It is unfortunate but the truth is the previous government failed to adhere to the measures set by the fund, so we have no choice than to acquiesce to their demands.” 

Speaking on JoyFm’s breakfast show on Thursday, former Deputy Minister, Ato Forson, was unable to respond to a question as to why their administration was unable to fulfill its part of the bargain with the fund.

 

www.primenewsghana.com/ Ghana News