US government will support approval of Ghana’s IMF request

The US government has stated that it will support Ghana’s application for an economic bailout with the International Monetary Fund at the Board level, implying that the austerity plan is the most viable way out of Ghana’s economic recession.

Ghana’s economy is currently experiencing high levels of inflation and corresponding increases in the cost of living.

As the country’s foreign reserves dwindle, the Finance Ministry is implementing a debt exchange program as part of efforts to keep the economy from collapsing.

The only remaining hurdle for Ghana to access the much-needed 3 billion cedis from the Bretton Woods institution is board-level approval.

American Ambassador to Ghana, Virginia Palmer, told Joy News’ Blessed Sogah that “the current economic crisis necessitates IMF assistance.” That is why international financial institutions were established.”

“As a result, we’ve urged Ghana’s government to negotiate with the IMF as soon as possible, and as a Board member, we’ll support those programs.” In addition, we collaborate with Ghanaian businesses and the Ghanaian government to improve the business environment so that Ghana can live up to its international reputation.”

The United States continues to hold the most Special Drawing Rights (about $118 billion).

Meanwhile, Ghana is expected to reach an agreement with the International Monetary Fund at the staff level by Tuesday, December 13, 2022.

Reuters reports that, while the Fund has not responded to requests for comment, three sources with knowledge of the ongoing talks have confirmed their existence.

A Staff-Level Agreement will pave the way for the Fund’s Board to negotiate and, most likely, approve a program for the country.

The cedi has been strengthening against the US dollar in recent days, implying that a deal between Ghana and the Fund could be reached soon.

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