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IMF Bailout IMF urges gov’t to stick debt recovery plans under bailout program

The IMF team emphasized this in a recent meeting with Finance Ministry and allied government officials overseeing the implementation of the IMF bailout program.

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IMF Team play

IMF Team

The International Monetary Fund has urged government to strictly adhere to the strategies laid out under the country’s three-year bailout program geared towards addressing the country’s heavy debt situation.

The IMF team emphasized this in a recent meeting with Finance Ministry and allied government officials overseeing the implementation of the IMF bailout program.

According to the IMF, it is concerned about how State-owned Enterprises, especially in the energy sector are being run.

The Volta River Authority, alone owes a total of 4.4 billion Ghana Cedis in debt to 12 banks, to the redemption of which government has paid 250 million Ghana Cedis from the energy sector emergency levies collected from Ghanaians.

READ MORE: Bailout Program IMF team unhappy with gov't disregard for bailout conditions

According to IMF team lead Joel Toujas-Bernate, government must sti to regulations laid-out in the bailout plan to avoid additional risks on the budget of the Bank  of Ghana.

This was after Finance Minister, Seth Terkper said government is teaming up with the Bank of Ghana to  fashion  suitable payment plan that will ensure that the debts owed by SOEs are paid in three years.

The mission further stated that the move is pertinent in firming up the fiscal outlook for 2016 and beyond. Government has made an upfront payment of approximately GHS250 million which will be funded from the energy sector levies. Placing limits on VRA Meanwhile, government has placed limits on the ability of the VRA to incur new indebtedness without express approval.

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