Fiscal Policy Ghana is on track to conclude IMF programme - Mona Quartey

Her comments follow warning from economists such as Joe Abbey of dire consequences for the economy if Ghana fails to meet key tenet of the deal.

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play Deputy Minister of Finance, Mrs Mona Quartey.
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A Deputy Minister of Finance, Mrs. Mona Quartey, has said Ghana is on track with its $918 million aid deal with the International Monetary Fund (IMF).

Her comments follow warning from economists such as Joe Abbey of dire consequences for the economy if Ghana fails to meet key tenet of the deal.

The IMF board rescheduled its July meeting to discuss the release of the third tranche to August due to ‘outstanding issues.”

However, Mrs. Quartey said in a media interview said the country is on track to successfully conclude the three-year extended credit facility.

"The Fund themselves have said they are looking at mid-September is the date they will go the board because a lot of work is going on to get ready for the board meeting and that will just happen.

"Trust me, Ghana will conclude this fund programme, this extended credit facility which is for three years we will conclude it successfully

"Already there is no doubt we are on track. We have already achieve a lot of the prior conditions," she said in an interview with Joy FM.

She also downplayed suggestions that investors are worried, arguing that people have just adopted the 'wait and see attitude.'

"I don't think that people are worried. I think People are just looking because investors always have this wait and see approach. So they always look out for indicators that will give them the green light or the signals to move forward in terms of investing their money."

Read about Ghana's IMF programme

Economist warns of economic challenges over failure to meet IMF conditions

We’ll come out of IMF programme with a robust economy - Mahama

Abandon IMF programme, TUC boss tells Mahama

Mr. Abbey has warned of economic challenges if Ghana fails to meet conditions in the IMF deal for the release of the third tranche.

The deal, clinched in 2015, is aimed at tighter fiscal discipline, stronger public finances and lower inflation as well as job creation while protecting social spending.

Parliament this month rejected a key condition that would prevent the government from borrowing from the central bank.

It adopted a motion that said the Bank of Ghana can finance the budget deficit up to 5 percent.

"The worry some of us have which is part of the reason we've been quite is that there can be very serious implications for investors if the fund [IMF] is to say sorry, 'we are unable to get the approval of senior management to take a clear recommendation to our board," Mr Abbey said.

"The yield on your Eurobond may take a hit because whether we like to acknowledge it or not these financial market take the IMF assessments very serious. To the extent that failure could raise cost of our borrowing to us," he added.

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