The newly formed Mahama government is considering the possibility of securing additional funding from the International Monetary Fund (IMF) as part of its ongoing three-year programme to support economic stability. This was shared by the Finance Minister-designate, Dr. Cassiel Ato Forson, during a press conference on Thursday.
President John Mahama recently took office after a successful campaign, defeating the ruling party’s candidate in December’s election. He appointed Dr. Forson—a former minority leader in parliament—to the pivotal position of finance minister. Forson expressed a strong commitment to collaborating with the IMF while also exploring avenues to enhance financing through both domestic and international partnerships.
“We acknowledge our reliance on Treasury bills has not been particularly fruitful,” Forson noted. He emphasized the importance of strategic planning in the financial landscape, especially as the IMF team conducts meetings in Accra.
Dr. Forson, who is a chartered accountant with a Master’s degree in taxation from Oxford and a doctorate in finance from a local university, also highlighted the need for prudent public spending reforms to further decrease inflation rates. “We see opportunities to eliminate inefficiencies and reduce wastage within the system, which will support our goal to resume domestic bond issuance by mid-year,” he stated.
Following a difficult financial period marked by a debt default in 2022, the Mahama administration aims to complete the restructuring process by reaching a resolution with its non-Eurobond commercial creditors, according to Forson.
Reevaluating IMF Engagement
President Mahama, who previously served from 2012 to 2017, has indicated his intention to revisit the terms of Ghana’s bailout agreement with the IMF, a promise that has resonated with voters seeking reforms. However, market analysts suggest that while there may be room for some adjustments, a complete departure from the current IMF programme may be unlikely.
The president aims to swiftly create a cabinet that will address economic challenges and enhance job creation to alleviate rising public discontent. Alongside Dr. Forson, Mahama has selected John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general and justice minister.
The new administration inherits an economy that is gradually recovering from a significant crisis. The finance minister stressed the importance of reforming the vital cocoa sector, which has faced numerous challenges in recent years. “We must address issues related to funding, crop diseases, and overall production comprehensively. A thorough overhaul of the sector is essential,” Forson asserted.
It’s worth noting that Dr. Forson previously faced allegations related to the loss of public funds in an ambulance supply deal from his tenure as deputy finance minister; however, he was acquitted by the courts.
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