The Executive Board of the International Monetary Fund (IMF) has approved new programme targets for Ghana for 2016 after completing its second review of the country’s performance under the three-year extended credit facility.
The Board conducted the review on Wednesday, January 13 and expressed satisfaction with Ghana’s performance.
But it called for tighter measures to keep the country on track.
“To ensure that gains from fiscal consolidation will be sustained over the medium term, effective implementation of a wide range of ambitious reforms is needed,” said Min Zhu, IMF’s Deputy Managing Director. “These include measures to broaden the tax base and enhance tax compliance, strengthen control of the wage bill, and enhance public financial management.”
The completion of the review guarantees the disbursement of $114.6 million to Ghana, bringing total disbursements to $343.7 million.
The disbursement is set to hit the coffers of the Central Bank, which has been advised to “further tighten monetary policy if inflationary pressures do not recede as expected”.
“The preparation of an amended Bank of Ghana Act and BoG’s commitment to gradually deepen the foreign exchange market will help make the inflation targeting framework more effective.”
Mr Zhu also advised the Bank to take immediate steps to address weaknesses in asset classification.
“Prompt implementation of the new banking laws currently under review by Parliament is also essential to safeguard financial sector stability.”