Economist Prof. Patrick Asuming has revealed that the government plans to refine Ghana’s $3 billion International Monetary Fund (IMF) bailout by implementing tax reforms and expenditure rationalization.
He indicated that further details would be outlined in the March 2025 budget presentation.
Additionally, Prof. Asuming suggested the creation of a sinking fund to leverage Ghana’s gold reserves, arguing that such a fund would provide a financial buffer in times of economic distress.
“A sinking fund is beneficial when the economy is stable and resilient to external shocks. It helps minimize damage during downturns by ensuring more funds are set aside in good times,” he explained.
His comments come after President John Dramani Mahama reiterated that his administration had no immediate plans to extend Ghana’s IMF Extended Credit Facility (ECF) programme.
Speaking in an interview with Bloomberg TV at the Munich Security Conference, Mahama emphasized that his government remained focused on executing the current agreement rather than seeking an extension.
“If necessary, we’ll consider additional funds or an extension, but for now, we are committed to following through with the programme,” the President stated.
Ghana’s ECF programme, approved in May 2023, spans three years and is aimed at economic recovery and growth.
Under the agreement, the government is required to implement structural reforms and fiscal discipline to restore stability.
Discussions with the IMF have focused on tax rationalization, debt management, and fiscal prudence, key measures Mahama believes are essential for ensuring long-term economic stability and maximizing the benefits of the bailout package.
