IMF DELEGATION ARRIVE IN GHANA FOR ARTICLE IV CONSULTATION

A five-member IMF delegation led by Ms Piroska Nagy is in the country to undertake the annual Article IV Consultations with Ghana. Under article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year.

The meeting would discuss among other things implications of domestic policies on external stability, financial sector issues and impact of the oil discovery on the Ghanaian economy and the effect of international financial crisis on Ghana.

Welcoming the delegates, the Honourable Minister of State at the Ministry of Finance and Economic Planning, Dr. Anthony Akoto Osei noted that though Ghana’s macro economy has stabilized and registering continued growth there are still challenges in the energy, revenue and wages sectors.

Ms Piroska Nagy in her brief comments said there is the need for sustainable growth with low inflation. She said the IMF recognized the fiscal implication of the energy crises on the economy, however, the good policies being implemented has cushioned the economy thus far.

The Deputy Governor of the Bank of Ghana, Dr. Muhammadu Bawumiah noted the economy has been fairly resilient in the face of the challenges.

He also mentioned that, this year, the banking and financial sector has seen the establishment of two banks, Bank of Ghana programme of introducing the E-zwich payment system is also on schedule.

Mr. Kwabena Boadu Oku Affari, Director of the Policy Analysis & Research Division (PARD) at the Ministry of Finance and Economic Planning fiscal outturn for 2007. He said Tax Revenue was robust but below target by 0.9 percent of the Gross Domestic Product (GDP) and added that, project grants were also below target by 0.7 percent.

Present at the meeting were representatives from the Bank of Ghana, Ghana Statistical Service, Ministry of Trade, Industry, PSD and PSI, the COCOBOD and Multi Donor Budget Support partners were also present.

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