Move to secure additional IMF funds in the right direction — Prof Bokpin

Finance and Economics professor at the University of Ghana, Godfred Bokpin, has expressed support for the call to secure additional funding from the International Monetary Fund (IMF) to support Ghana’s struggling economy.

Speaking on Accra-based Joy FM’s Middaynews on Friday, January 10, Professor Bokpin said the push for more financial support was a step in the right direction.

He explained that the $3 billion IMF package had been largely front-loaded, with a significant portion already utilized. Similarly, funds from the World Bank and the African Development Bank have also been deployed, leaving limited fiscal relief for the incoming administration.

“The $3 billion IMF package was largely front-loaded, meaning a sizable portion of it has already been utilised. Similarly, funds from the World Bank and the African Development Bank have also been deployed. This leaves limited fiscal relief for the incoming administration to work with,” he explained.

He emphasized the need for a new, enhanced IMF programme to help stabilize the country’s economy beyond 2026, noting that such a plan would boost investor confidence and attract foreign direct investment.

“A new government with a clear electoral mandate cannot be expected to deliver transformative results within the framework of the existing IMF-supported programme. We need an enhanced programme, with extensions that stabilise Ghana’s economy beyond 2026,” he added.

Professor Bokpin further called for medium to long-term concessionary funding from development partners to ease the pressure on short-term borrowing, stabilize interest rates, and create fiscal space for the government to operate effectively.

“To address these challenges, there’s a pressing need for medium to long-term concessionary funding from development partners. This will not only ease pressure on short-term borrowing but also stabilize interest rates and create fiscal space for the government to operate effectively,” he said.

This comes after new President, John Dramani Mahama, expressed interest in seeking additional IMF funds to cushion the economy during the country’s current three-year programme with the lender.

The Finance Minister-designate, Dr Cassiel Ato Forson, confirmed this intention on Thursday.