The government has assured Ghanaians that the financial sector of the country will be protected in the negotiation with the International Monetary Fund (IMF) for economic support.
According to the Finance Minister Ken Ofori-Atta the country needs a viable domestic financial system to support its development programme, and will do everything possible to protect the sector.
“Therefore, everything must and will be done to protect our financial sector and there must be room for a win-win conversation through extensive stakeholder engagement, with both our domestic and external investors,” Ken Ofori-Atta stated, whilst addressing a news conference in Accra yesterday.
This assurance has allayed public fears that the IMF programme being negotiated by the government will cripple the financial sector, especially the banks.
According to Mr. Ofori-Atta, a five-member Committee, consisting of prominent financial service professionals will lead to extensive stakeholder engagements across all the key segments of the financial sector.
These engagements will add to ongoing activities with Civil Society Organisations (CSOs), social partners (labour unions, employers and FBOs), academia, industry professionals and the leadership of Parliament, with the minister assuring that “government shall continue to actively engage all stakeholders in a clear and transparent manner, as we seek to fast-track the IMF negotiation process.”
IMF PROGRAMME IN BUDGET
The media were informed that the government and the IMF on Monday, September 26, 2022, began formal negotiations for a Fund-supported programme and that discussions will cover a period of 10 days.
The Finance Minister said the negotiations with IMF, which started on Monday, this week, will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement.
“Government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection,” he remarked.
7-PILLAR PROGRAMME
The reporters were told that the IMF programme hinged on seven pillars – debt sustainability; fiscal consolidation; strengthening monetary and exchange rate policies; and building strong financial institutions.
The rest are Macro-Critical Structural Reforms; Maintaining Peace and Security; and Economic Growth and Transformation.
Meanwhile, the government said it has not reached any agreement with the Fund on the parameters of any debt operations, “as we are in the process of completing the debt sustainability analysis.”
Read the Finance Minister’s full statement on pages 8 and 9.
