$3bn IMF-supported programme not on track – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has revealed that Ghana’s $3 billion IMF-supported programme is off track, as the country has missed the key Quantitative Performance Criteria (QPCs) and structural benchmarks.

He attributed the setbacks to the previous administration, highlighting missed targets such as inflation, which was expected to reach 15% but was not achieved.

Dr. Cassiel Ato Forson speaking to Bernard Avle on the Point of View on Channel One TV indicated that the lapses are expected to be a key focus in the upcoming IMF review

“Let me start with the primary balance which is a key QPC. We were supposed to do 0.5% of GDP [surplus]. The data that we have seen so far, they have done a deficit of 3.9% of GDP and that is the primary anchor…that is the main anchor for the IMF programme. We have missed it. Inflation, there is a monetary policy consultation clause in the IMF programme and we are supposed to do inflation of 15%. What is the outturn? 23.8. It has triggered a discussion with the IMF for us to have a conversation on the monetary policy.

“In fact a third major QPC that we missed has to do with social spending. We failed even on social spending. So all the three main QPCs were all missed and the structural benchmarks including bills that were supposed to be sent to Parliament. They missed all of them. So how can you say the IMF programme is on track?

“When we took office and based on all that we have seen and the data before us…at the time, we all knew the IMF programme was on track but today it is not on track,” he said.

Source: citinewsroom.com