The International Monetary Fund Resident Representative in Ghana, Dr. Leandro Medina, said that in order to get the $3 billion bailout, Ghana has to strictly stick to revenue-generating requirements, citing the importance of tax and tariff hikes.
In an interview broadcast from Accra’s Citi TV, he emphasised the need for these measures for the successful implementation of Ghana’s three-year, US$3 billion Extended Credit Facility with the International Monetary Fund.
“The revenue measures that have been passed between December and April are part of the prior actions. It’s very important to mobilise revenue. Revenue to GDP in Ghana is very low as compared to other countries. Ghana is making a huge effort to increase revenue, and this will be done mainly by increasing the tax base. What is important to say is that this is a large and front-loaded fiscal consolidation”, he said.
On May 17, 2023, the IMF’s Executive Board met in Washington and unanimously authorised a $3 billion bailout for Ghana. On the day the bailout was approved, $600 million of the $3 billion loan was released, with the remaining $350 million to be released every six months for the course of the three-year plan.
The Finance Ministry announced in a post that the initial loan payment had been received.
The ministry also said that the $600 million will help restore the economy’s stability and support the nation’s debts at a reasonable interest rate.
Under the IMF programme, Ghana will receive around $3 billion over the course of three years.
