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Ghana's Economy IMF agreed 2-5% emergency financing of Govt - Ato Forson

Minority MP on the finance committee in parliament Dr Mark Assibey Yeboah said the fund might not release the third tranche because the government is not sticking to the rules of the programme.

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play Cassiel Ato Forson

The government has dismissed concerns from the minority in parliament that the IMF extended credit facility program with Ghana might be cancelled.

The minority expressed those fears after parliament amended the Bank Of Ghana Act allowing the government to borrow not more than 5 % of the previous year’s revenue contradicts the earlier agreement.

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Minority MP on the finance committee in parliament Dr Mark Assibey Yeboah said the fund might not release the third tranche because the government is not sticking to the rules of the programme.

He said the delay by the IMF Board to sanction the release of the 116 million dollar third tranche might lead to the deal in totality being called off.

The IMF demanded a zero financing of government deficit by the Central Bank as part of the program under the memorandum for financing and economic policy .

Ghana entered into a 3-year extended credit facility program with the IMF in February  2015 to help turn the ailing economy around.

Addressing the fears of the Minority, deputy Minister of finance Cassiel Ato Forson said ,” IMF said or asked government to create an opportunity to do 2-5%  in terms of emergency financing “.

He said despite the recent amendment , the government has not borrowed from the Central Bank this year .

“Government has no incentive to borrow from the central bank , if government will pay 26% base rate when it borrows from the central bank and will pay 24% on the treasury market , why will it do that," he queried.

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