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The Executive Board of the International Monetary Fund (IMF) on Friday approved Ghana’s US$360 million third tranche for the implementation of the country’s Post COVID-19 Programme for Economic Growth (PC-PEG).
This comes following a successful completion of the second review of the US$3 billion three-month Extended Credit Facility (ECF) arrangement, having recently concluded debt restructuring with external creditors.
This comes following a successful completion of the second review of the US$3 billion three-month Extended Credit Facility (ECF) arrangement, having recently concluded debt restructuring with external creditors.
He also urged the government to continue to improve tax administration, strengthen expenditure control, and management of arrears, enhance fiscal rules and institutions, and improve State-Owned Enterprises (SOEs) management.
Welcoming the development, businesses, manufacturers and traders alike, have urged the government to prioritise stability of the economy, and ensure that it reduced the appetite for accumulating debt that it could not repay
That should include further reducing inflation and stabilising the depreciation of the Cedi through targeted policies, and making the business environment friendlier, including making taxes affordable and easy to pay.
Mr Seth Twum-Akwaboah, Chief Executive Officer, Association of Ghana Industries, said the completion of the country’s debt and the approval of the third tranche US$360m would boost confidence in the economy.
He said this in an interview with the Ghana News Agency, noting that was important for the government to make policies solidify economic gains and enable businesses have respite to grow and expand.
He noted that the Cedi depreciation, a major challenge of businesses was fuelled by speculation, leading to uncertainty in the system and the tendency for people to buy the dollar and hoard them even when they did not need it.
He urged the government to come up with interventions that would inspire hope into the system, and reduce people’s habit of buying the dollar as a store of value because to speculation.
He expressed confidence about the third tranche US$360m helping to stabilise the economy, and making businesses grow.
Source: myghanadaily
