The Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Prof. Peter Quartey is worried that Ghana’s debt levels may pose a challenge to its move for International Monetary Fund (IMF) support.
The Ministry of Finance on Monday announced that the IMF delegation is currently undertaking a comprehensive debt sustainability analysis of the country.
Acknowledging that the IMF has various support schemes the country could benefit from, the Professor of Economics is disturbed the country’s unsustainable debt levels raise more concerns.
“For IMF, they require that you have a sustainable debt level or a medium-term plan to ensure that, your debt levels become sustainable. They have been sounding this warning, but Ghana’s debt sustainability threshold is not good.”
The Ministry of Finance has confirmed that its officials and of the Bank of Ghana have commenced a comprehensive debt sustainability analysis with the IMF for a $3 billion support programme.
A statement from the ministry said: “the Government of Ghana is putting together a comprehensive post-Covid-19 economic programme which will form the basis for the IMF negotiations.”
“The programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability, underpinned by key structural reforms and social protection.”
The ministry added that it is “optimistic about making progress in our discussions.”
“Government remains committed, and shall continue to actively engage all stakeholders, both public and private, in a clear and transparent manner as we seek to fast-track this process.”
credit:citinewsroom.