Finance Minister explains why Ghana is off-track on the $3bn IMF-supported programme

Finance Minister Dr. Cassiel Ato Forson

Finance Minister Dr. Cassiel Ato Forson says Ghana’s $3 billion agreement with the International Monetary Fund (IMF) is not progressing as planned.

He indicated that the country has fallen short of key Quantitative Performance Criteria (QPCs) and structural benchmarks.

He blamed the situation on the Akufo-Addo-Bawumia administration, pointing out that inflation was supposed to decline to 15% but did not meet expectations.

During an interview on The Point of View on Channel One TV, Dr. Forson noted that these challenges would be a major topic in the next IMF assessment.

“Let me start with the primary balance which is a key QPC. We were supposed to do 0.5% of GDP [surplus]. The data that we have seen so far, they have done a deficit of 3.9% of GDP and that is the primary anchor…that is the main anchor for the IMF programme. We have missed it. Inflation, there is a monetary policy consultation clause in the IMF programme and we are supposed to do inflation of 15%. What is the outturn? 23.8. It has triggered a discussion with the IMF for us to have a conversation on the monetary policy.

“In fact a third major QPC that we missed has to do with social spending. We failed even on social spending. So all the three main QPCs were all missed and the structural benchmarks including bills that were supposed to be sent to Parliament. They missed all of them. So how can you say the IMF programme is on track?

“When we took office and based on all that we have seen and the data before us…at the time, we all knew the IMF programme was on track but today it is not on track,” he emphasised.