Economist Professor Patrick Asuming believes Ghana is likely to obtain waivers on some of its performance targets as the country enters the second day of discussions with the International Monetary Fund (IMF) under the fourth review of its Extended Credit Facility (ECF) programme.
He attributes this to the government’s demonstrated commitment to fiscal discipline.
The ongoing review is a critical step in Ghana’s engagement with the IMF, as the country seeks to stay on track with its economic recovery program. Securing waivers would provide some flexibility in meeting program targets, particularly in the face of economic challenges.
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Speaking to Citi Business News, Professor Patrick Asuming suggested the IMF will likely accommodate some of the missed targets as the new administration is new.
“We definitely would miss some targets. No question about that. The period for this ends 31st December. We missed some of the performance criteria. We definitely missed the inflation target. We probably missed some of the fiscal targets in particular the deficit target.
“I think we also missed a couple of structural targets. But I think as a new government, probably the IMF will be willing to cut them some slack.
“The government seems aggressive in trying to implement it fiscal programs. I have seen that they have passed the Public Financial Management Act,” he said.
Professor Patrick Asuming has also urged the government to maintain transparency in its negotiations on VAT reforms.
“We don’t want a situation where they go and agree something with the IMF when the Ghanaian academia as well as the business community is not fully informed,” he added.
Source: CNR
