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Ken Ofori-Atta, Ghana's finance minister, pauses during a Bloomberg Television interview in London, U.K., on Wednesday, March 20, 2019. Ghana, which this week raised $3 billion through debt sales and was contemplating 100-year bonds, will work with the market to determine the tenure of its next issuance, Ofori-Atta said. Photographer: Simon Dawson/Bloomberg via Getty Images
The International Monetary Fund (IMF) has advised the government to strictly limit borrowing on non-concessional terms, and ensure that debt payments are made on time.
The Fund also wants the authorities to develop and publish a medium-term debt management strategy and an annual borrowing plan once the external debt restructuring is completed.
In its 2023 Article IV Consultation, the Fund said the government has highlighted its commitment to the programme’s fiscal objectives and stands ready to deploy contingency measures if needed.
“Specifically, on the revenue side, some of the measures identified in our MTRS could be brought forward in case of unexpected underperformance” the IMF added.
On the spending side, it pointed out that the Ministries, Departments, and Agencies (MDAs) budget allocations would be reduced during the year if needed.
Programme performance
Despite all these concerns, the IMF alluded that Ghana's programme has been on track as all indiactive targets have been met.
“All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met”.
The staff report added that Ghana is on track to lower the fiscal primary deficit on a commitment basis by about 4 percentage points of Gross Domestic Product in 2023 consistent with the authorities’ commitments under the Fund-supported programme.
It continued that spending remaining within programme limits, whilst on the revenue side Ghana has met its non-oil revenue mobilization target”.
It said sound policies and reforms should foster recovery and further reduce inflation over the medium term, adding, “downside risks include slippages in programme execution, delays in restructuring debt, and a deterioration in the external environment”>
“The authorities have reoriented their macroeconomic policies, made progress in restructuring their debt, and initiated wide-ranging reforms” The IMF concluded.

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