Excitement over $3bn IMF agreement premature – Minority

The Minority in Parliament has downplayed the government’s agreement with the International Monetary Fund for a $3 billion support.

The Minority claims the excitement by the government over the deal is premature adding that the Finance Minister, Ken Ofori-Atta, must rather focus on securing management and board approval of the fund.

“What is important is not a staff-level agreement but a management and board approval of Ghana’s application by the IMF board which will probably take us to April or even beyond. Therefore, celebrating and dancing over staff-level agreements is premature,” the Minority Leader, Haruna Iddrisu told journalists in Parliament on Tuesday.

The Tamale South MP said Mr Ofori-Atta has rather worsened the livelihood of Ghanaians and needs no praise for reaching a staff-level agreement with the IMF.

On Tuesday, the government announced a Staff-level Agreement with the International Monetary Fund for a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.

The agreement was reached after several months of talks between Ghanaian government officials and authorities of the IMF.

Addressing Journalists at a press conference on Tuesday, Mr Ofori-Atta said the agreement when finally approved by the IMF Board will help restore macroeconomic stability, tackle inflation, and strengthen the local currency.

“Truly, the eventual conclusion of the program will assist us in our efforts to restore stability, tackle inflation, and strengthen our currency.”

Ghana’s inflation rate climbed more than expected in October, raising pressure on the central bank to continue increasing borrowing costs that are already at a more than five-year high.

Annual inflation quickened to 40.4% compared with 37.2% a month prior, Government Statistician Samuel Kobina Annim said.