Government may seek additional funds from the IMF – Mahama hints

President John Dramani Mahama has hinted that the government will extend the $3 billion bailout program with the International Monetary Fund (IMF) or seek for additional funds if necessary.

According to him, they are in good discussion with the IMF.

Speaking in an interview with Bloomberg’s Jennifer Zabasajja on the sidelines of the Munich Security Conference taking place in Germany, President Mahama stated that “Well, it’s not off the table. I guess it is a journey we just started, and we have good discussions. And if it’s necessary to look at additional funds or extend the program, we will look at it. But for now, we are determined to continue the trajectory.

He however, listed some issues they think the government needs to discuss with the IMF.

“We have just had a staff visit so our Ministry of Finance is engaging with the IMF. There were few issues, we were not on the table when this agreement was drawn up and so coming into government, there are few issues that we thought we should discuss with the IMF. The issue of Tax rationalization, because of the target of achieving 24% revenue to GDP by 2028, the program required that revenue should continue to increase at a certain rate.”

“We have not talked about an extension of the program, we are determined to continue with this program, and I think it means that we must be more prudent in our handling of finances. We must also look at the expenditure side and see how we can cut waste. And so we need to shift resources into more priority programs, and so it’s a whole basket of considerations we are looking at.

“We also have the issue of debt restructuring and the humps that have been created. This year we have to pay in excess of GH¢15 billion on the domestic debt exchange. What we have done is to reactivate the sinking fund and put more resources into it to take care of the repayments that have to be made this year. But all in all we have a cordial relationship with the IMF.” Mr. Mahama said.

Source: Elvisanokyenews.com