Ghana Won’t Renegotiate IMF Bailout Programme—Finance Minister

Finance Minister Seth Terkper has emphasised the government will not renegotiate the three-year International Monetary Fund (IMF) bailout programme.

According to him, Ghana is on track as far as the bailout terms are concerned and it will be counterproductive to renegotiate.

Economic policy think-tank Institute for Fiscal Studies (IFS) has reiterated that government’s performance in the three-year IMF programme could face serious challenges over the medium-term, particularly as its pursues front-loaded fiscal consolidation on the back of zero central bank financing for government.

The observation from the think-tank comes in the wake of the Fund programme’s first review, which identified that although it remains on track on all performance criteria, the ceiling on central bank financing to government, were missed.

Speaking to Accra-based Citi FM, the Finance Minister said the bailout is not “an imposition and I believe we are on track in the first review so are they calling for a renegotiation at this stage? It will not be helpful.”

He warned that Ghana could become like Greece if it goes for renegotiation.

“I think we can learn from what is going on in Greece. It could be applicable to us,” Terkper pointed out.