Ghana likely to secure IMF program in May

The country is likely to secure a program with the International Monetary Fund by May next year, Joy Business gathered from persons close to negotiations with the IMF.

However, there some critical conditions that the country must first meet before the program can be closed, Joy Business learnt.

Government was initially looking at closing negotiations with the IMF during their recent visit to Ghana, for the program to take off from next year. However, due to some concerns raised by the Fund, Ghana was not able to conclude discussions with the mission while they were in Ghana. This has forced the team to push the date for the country's program with the Fund to next year.

But critical issues the country has to address before the program can be secured include concern raised by the European Union about some serious corruption associated with the country's public pay roll.

Sources say the EU has maintained that it would not disburse its portion of 1.5 billion dollars together with the World Bank and other donors, unless government takes steps to clean up the pay roll and reduce the deficit substantially.

Joy Business has gathered that this has forced the Fund to briefly hold on to the negotiations because it cannot proceeds if it does not get the EU's full support. 

Analysts have maintained that looking at the conditions being put forward by the EU, it might be difficult for all these conditions to be met before the program with Ghana will take off.

When the staff complete their talks with government, they have to put together their report and circulate it to staff members for their views before it is forward to the IMF Executive board for their approval. This, analysts say, could even delay the program further.

Joy Business has even learnt that the there are fears that board might not even consider Ghana's program when the board meets in December.  

Meanwhile Ghana could get about 2.3 billion dollars in financial support from an IMF program.

Sources say the Washington-based lender could provide about 800 million dollars, while the remaining 1.5 billion dollars would come from the European Union together with other development partners of the country. Joy Business has also learnt that Ghana would get a three year program with the Fund.

In a related development, Deputy Minister of Finance, Mona Quartey says as far as she is concerned, government is making great progress with the IMF.