Cassiel Ato Forson, the finance minister appointed by Ghana’s new leader, stated that the West African country expects to increase its assistance from the IMF and other multilateral.
Forson told reporters in the Accra capital on Thursday, “We are dedicated to collaborating with the IMF and are working hard to obtain more funding from the IMF, World Bank, and international development partners. We will strive for everyone’s well-being because we understand the hardships investors have faced, and we cannot allow a second economic crisis.”
At 10:03 p.m. local time on Friday, the yield on Ghana’s dollar bonds due in July 2035 was unchanged at 10%.Â
Ghana, which was once a popular destination for investors, is only now beginning to recover from one of its most severe debt and economic crises. The nation grudgingly requested a $3 billion rescue from the Washington-based lender in 2022 due to its inability to meet debt payments that took up over half of government income.
Thanks to implementing changes under the facility, Ghana could reorganize its debt and escape default in October. An IMF team is currently in Ghana, and its program with the lender is scheduled to conclude in May 2026.
Return on Domestic Bond Markets
The country wants to target multi-laterals for additional funding because its overreliance on treasury bills, which it has resorted to since its default, is harmful, according to 46-year-old former deputy finance minister Forson. He was nominated to his new position earlier on Thursday by newly inaugurated President John Mahama.
He stated, “We have not yet engaged the fund, but if you look at the government’s gross financing needs, there is a need to get cheaper sources of financing.”
In addition to saying that fiscal consolidation would be essential to bringing inflation, which averaged 23% last year, down to single digits, Forson, who holds a master’s degree in taxation from the University of Oxford, will be instrumental in Mahama fulfilling his election pledge to stabilise an economy plagued by crippling debt and high living expenses.
He also said it will raise “our credit ratings” and enable the country to re-enter the domestic bond market. He stated, “We hope to be able to achieve that by the mid-year.”
In the parliament, where Mahama’s National Democratic Congress holds almost two-thirds of the seats, Forson’s appointment as finance minister is still pending confirmation.
Other Noteworthy Aspects
According to Forson, Ghana’s new government will host a national economic forum prior to its budget to gain support for its plans for fiscal consolidation and collaborate with the IMF to guarantee that its recommendations are carried out “in a way that we can attain market confidence. “
Additionally, it will establish a separate office to guarantee that government-awarded contracts are carefully examined and provide good value. To spur growth and generate jobs, he stated, “We will spend on the right priorities at the right price.”
