The International Monetary Fund’s Resident Consultant to Ghana states when Ghana officially requested for the Fund’s help back in 2014, the nation only experienced all around seven days’ worthy of of imports in internet overseas exchange reserves, equal to $400 million.
In an posting, Dr Albert Touna-Mama explained, “When Ghana formally asked for the Fund aid on August 8, 2014, the cedi had depreciated by 40 for every cent, inflation was in the double-digits, and the Lender of Ghana only experienced around seven days’ truly worth of imports in web overseas trade reserves, equivalent to $400 million.”
He additional, “In the initial fifty percent of 2014, the fiscal deficit was nearly completely financed by Lavatory printing income for an sum equivalent to 22 for every cent of the prior year’s fiscal profits, in comparison with a target of only 5 for each cent, as different funding sources have been drying up rapid. Fascination charges stood at all around 24–25 for each cent on domestic credit card debt.”
In accordance to Dr Touna-mama, “The generous terms of the Fund funding furnished Ghana with the required respiration space to keep away from resorting to steps that are damaging to national prosperity.”
“For occasion, the Government was ready less than the programme not to accrue new arrears though at the exact time adopting a clearance prepare to deal with legacy arrears.”
The IMF Executive Board authorized a $918 million personal loan to Ghana in 2015 to aid a reform software aimed at more quickly expansion and job generation whilst safeguarding social shelling out.