The delay by the board of the International Monetary Fund (IMF) to present a report on Ghana’s performance under the Extended Credit Facility (ECF) programme after the last review is raising eyebrows.
While sources say the challenge has come about because of delays by the IMF staff to conclude its report on Ghana’s progress, analysts have blamed the situation on government’s failure to meet certain critical performance targets under the ECF programme with the country.
Also plans to review targets set out in the 2016 budget this month could be affected.
Other obstacles include the failure to pass of the Bank of Ghana Act and also the employment of pragmatic strategies to address the rising debt of state-owned institutions.
According to experts, such developments could cost government the much-needed endorsement to attract investors for Ghana’s 4th Eurobond, which was being programmed to take place by the end of the 3rd quarter of the year.
A good report from the fund could definitely be used by government to convince investors and donors that it was on track to stabilize the economy.
Analysts suspect Ghana was not on the agenda on the IMF board review in June and this month even though they claim the IMF, on the two previous occasions, presented its report on the reviews around this time.
Economist Dr John Kwakye has however pleaded with Ghanaians to forgive government for its inability to satisfy all the conditions under the IMF programme, adding that the IMF could grant waivers to such areas that government did not achieve its targets.
Ghana’s debt stock has crossed the 70 percent threshold, and there has been no mention of the actual debt owed both foreign and local investors by government since the end of 2015 when it said the amount was GH¢97.2 billion.
Economic analysts claim the total national debt has crossed GH¢110 billion.
By Samuel Boadi