IMF agreement will include stringent fiscal restrictions, - Terkper

 

According to Seth Terkper, a former finance minister, Ghana's staff level agreement with the International Monetary Fund (IMF)will enable the Fund to launch a number of actions that will force the government to make crucial fiscal decisions.

For instance, he said that the IMF Board can urge the Bank of Ghana to halt providing government money until the government is required to enact some stringent regulations as part of the conditions.

Speaking to journalists via a zoom presentation, Mr. Terkper said it would be crucial to follow the requisite roadmaps that the IMF Board would impose before approving the transaction in its entirety.

He said that after considering the personnel agreement agreement, the board would provide recommendations to the government.

"You will see the extent to which the Bank of Ghana measures in financing government expenditure will be terminated when the paper eventually goes to the IMF Board and is released," he remarked.

According to Mr. Terkper, the Board will thoroughly examine Ghana's financial situation and recommend steps to prevent slippages.

He added that this would include the current circumstance, in which the Bank of Ghana is supporting the government with more than 5% of its revenue from the prior year.

"Right now, the Bank of Ghana is spending somewhere around 40 billion to fund the budget. This will need to be reduced to zero. We are threading this course. The trip has just begun.