Government of Ghana requests new 3-year program from the IMF
The government has requested a new 3 year IMF programme, following the conclusion of the existing programme, the Extended Credit Facility Programme, a statement by the IMF has confirmed.
The new 3-year IMF programme the government has requested, known as the Policy Coordination Instrument, will require the IMF’s seal of approval for the government’s policies over the next 3 years for credit-worthy ratings or otherwise.
The goal of government in pursuing this new IMF programme, sources have indicated, is to allow the government free space to borrow more internationally as domestic revenue shrinks, because under the new program, the IMF will subject Ghana’s policies and performance to reviews every six months and indicate whether Ghana is on track or not.
Without the seal of approval under the new program, Ghana would find it difficult to access credit from the international markets.
Meanwhile, experts indicate that eventhough Ghana has exited one type of IMF program (the Ectended Credit Facility ) and entering into another type of IMF program (the Policy Coordination Instrument), the rigor of assessment under both programs is fundamentally the same.
Eventhough non financing, it standards and requirements as as strong as other IMF programmes, as it requires countries that subscribe to pursue policies that meet the rigorous “upper credit tranche” quality standards, similar to a regular loan program.
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