Akufo Addo announces plans to resume borrowing from the international market
Following the successful conclusion of Ghana’s $3 billion deal with the International Monetary Fund, President Nana Addo Dankwa Akufo Addo announces plans to immediately return to the international market to borrow to fund infrastructure projects.
President Akufo Addo stated during an address at the Qatar-Africa Economic Forum in Doha that while his administration is not eager to re-enter the global market, it makes sense to take advantage of the market and save some money.
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“We have made preparations to re-enter the global market, which provided us with funding throughout the first three to four years of our government,” stated the president, adding, “Although there is no rush, why not benefit from global savings?”
He went on to say that it makes perfect sense for the government to make every effort to preserve discipline since it is the most crucial requirement for a successful program.
The Finance Minister, Ken Ofori-Atta, has previously stressed Ghana’s commitment to fiscal restraint, declaring that the country will not rush back to the foreign capital market to borrow.
Ofori-Atta, speaking at a news conference on Thursday, May 18, 2023, emphasized the significance of income measures and smart spending management in guaranteeing financial stability and sustainability.
He also applauded the budget’s measures for increasing income, notably the enhancements made to the Ghana Revenue Authority (GRA), which are anticipated to provide the funds required for the development and growth of the nation.
He also added that there was no need to hurry and return to the international capital market. And just as we anticipate that by controlling our spending and expanding our earnings, we will have enough resources to meet our demands.”
President Akufo-Addo also stated that the government will commence strict spending cutbacks to fulfill the International Monetary Fund’s (IMF) conditions.
He further added that the administration is ready to turn the country’s fortunes around and will do all necessary to rebuild the struggling economy.
President Akufo-Addo expressed optimism that the IMF bailout will aid in the revival of Ghana’s economy.
President Akufo-Addo pledged to enforce strict spending cutbacks to fulfill the conditions set by the IMF. He expressed determination to turn the country’s fortunes around and rebuild the struggling economy. The president remained optimistic that the IMF bailout would contribute to the revival of Ghana’s economy.
Highlighting the commitment to rationalizing budget expenditure, President Akufo-Addo emphasized the critical role of domestic income mobilization.
He acknowledged positive early indicators and stressed the importance of bringing Ghana’s fiscal deficit, which had surpassed the 5 percent threshold established by fiscal policy law, to more sustainable levels for the nation’s well-being.