ACCRA (Reuters) – The Ghanaian government said in a statement it began negotiations with the International Monetary Fund on Monday on an IMF-backed loan program to reduce the economic hardship that has sparked street protests.
A team of IMF staff is discussing policy and reforms with officials from the Ministry of Finance and Central Bank of Ghana after the West African country applied for a loan from the IMF in July.
The government of Ghana, a major gold and cocoa producer, has struggled to rein in soaring inflation, reduce public debt and prop up the local currency. By the end of June, its balance of payments deficit had ballooned to nearly $2.5 billion from about 935 million in March.
IMF mission program runs until 7 October
“A key prerequisite to the program is confirmation that Ghana’s debt is on a sustainable path on,” the Treasury said, adding that a debt sustainability analysis was underway.
The government is also working on a post-Covid-19 economic plan, which will be negotiated with the IMF Basics. The statement added that the plan aims to ensure debt and macroeconomic stability through key structural reforms and social protection. 26 Last week coincided with the end of the mission.
