Ofori-Atta: $3bn IMF deal will help tackle inflation, strengthen cedi

The Finance Minister, Ken Ofori-Atta, has hailed the 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.

Mr Ofori-Atta in his address also called on Ghanaians and relevant stakeholders to come on board and support the programme to ensure its success.

“That is why the various ingredients of the program should be supported by all Ghanaians and all stakeholders.”

The embattled Finance Minister who survived a vote of censure from minority MPs called on Parliament to ensure that the 2023 Budget is approved along with all tax-generating measures.

“Key fiscal measures, structural reforms, and the medium-term macro-fiscal framework in the 2023 Budget are aligned with the IMF-supported Programme. It is therefore crucial that we receive support from all stakeholders including Parliament to ensure that the 2023 budget including all revenue measures are passed, and Creditors to ensure a successful debt operation.”

“We are optimistic that the 2023 Budget adjustment strikes the right balance between determination and pragmatism. Already, the economy is responding positively to the news of GoG and the IMF reaching an SLA and we are eager to leverage this momentum to the very moment when the IMF Executive Board approves the Programme request. We are already seeing significant improvements in the exchange rate with the Ghana cedi recovering against major currencies.

“We hope that Ghanaians will continue to support all efforts to restore macroeconomic stability and promote robust and inclusive growth.”