Ghana set to gain IMF waivers with fiscal discipline – Prof. Asuming

Economist Professor Patrick Asuming believes Ghana is well-positioned to secure IMF waivers on some performance targets as the country enters the second day of discussions under the fourth review of its Extended Credit Facility (ECF) programme.

He attributes this to the government’s demonstrated commitment to fiscal discipline, which could prompt the IMF to offer flexibility on missed targets.

The ongoing review is crucial for Ghana’s economic recovery efforts, and securing waivers would ease pressure on meeting program targets amid ongoing economic challenges.

Speaking in an interview, Professor Asuming acknowledged that Ghana has fallen short on key performance criteria, including inflation and fiscal deficit targets. However, he suggested that the IMF may be lenient due to the administration’s recent efforts.

“We definitely missed some targets—no question about that. The period for this ends on December 31, and we fell short on inflation and deficit targets, along with some structural benchmarks,” he stated.

“But as a new government, the IMF may be willing to grant some flexibility. The administration appears committed to fiscal discipline, and I’ve seen they have passed the Public Financial Management Act,” he added.

Professor Asuming also emphasised the need for transparency in government negotiations, particularly on VAT reforms, urging authorities to keep academia and the business community informed.

“We don’t want a situation where they reach an agreement with the IMF without Ghanaian academia and the business community being fully informed,” he cautioned in an interview with Citi Business News.