President John Dramani Mahama has made it clear that his administration has no immediate plans to extend Ghana’s current $3 billion Extended Credit Facility (ECF) with the International Monetary Fund (IMF). Apexnewsgh reports
In a recent interview with Bloomberg TV at the Munich Security Conference, President Mahama emphasized that while future extensions remain an option, his government is committed to adhering to the existing program.
The $3 billion ECF, approved in May 2023, is designed to support Ghana’s economic stability and growth over three years. President Mahama outlined key proposals presented to the IMF, focusing on tax rationalization, debt management, and fiscal prudence. These areas are critical for strengthening Ghana’s economic recovery.
President Mahama criticized the previous administration’s approach to taxation, which he believes led to diminishing returns. He explained that the program requires revenue to increase at a certain rate to achieve 24% revenue to GDP by 2028. However, the previous government’s approach resulted in lower revenue collection.
To address this, President Mahama revealed that the IMF has agreed to provide technical assistance in streamlining Ghana’s tax system. This will ensure efficiency and improved compliance for businesses and individuals.
Ghana is also facing significant debt repayment challenges, with domestic debt obligations exceeding $15 billion in 2025. President Mahama highlighted his administration’s proactive measures to manage these challenges, including reactivating the country’s sinking fund to facilitate debt repayments.
The government is committed to fiscal discipline, with expenditure rationalization remaining a priority. President Mahama emphasized the need to cut waste and shift resources to more priority programs.
Looking ahead, President Mahama highlighted the upcoming budget presentation in March, which will incorporate insights from the IMF’s latest staff review. The fourth IMF review is scheduled for April, and the government is aligning its fiscal policies with recommendations from the ongoing assessments.
Despite economic challenges, President Mahama expressed confidence in Ghana’s relationship with the IMF, describing it as “cordial.” He reiterated his administration’s commitment to maintaining this partnership and steering the country towards economic stability and growth.
Source: Apexnewsgh.com
