Ghana will solve debt crisis without IMF help, finance minister says

By Cooper Inveen

ACCRA (Reuters) -Ghana is dedicated to running its debt with out assistance from the International Financial Fund (IMF), Finance Minister Ken Ofori-Atta claimed, expressing his self confidence that authorities measures had been shifting the region in the suitable way.

Ghana’s full community personal debt, which stood at about 77% of its gross domestic products at the conclude of 2021, according to authorities facts, has pushed 1 of West Africa’s greatest economies to the brink of crisis.

The federal government in March introduced a raft of paying out cuts to deal with inflation, decrease the public deficit, restore a depreciating nearby forex and reassure spooked buyers.

But it has consistently refused to talk to the IMF for support.

“We have dedicated to not heading back to the fund because… the fund understands we are [moving] in the right course,” Ofori-Atta explained at a media conference in the funds Accra.

“It truly is about validating the program we have in area and locating other ways of dealing with our debt.”

The gold, oil and cocoa producer observed shopper inflation rise to an 18-12 months report of virtually 24% in April inspite of endeavours to comprise value hikes and spur restoration.

Ofori-Atta explained the priority would be to remedy the country’s domestic debt, which has curiosity charges that are three to four moments larger than overseas debt.

“We need to make your mind up ourselves what structure would be valuable to us,” he added.

The central bank in March lifted its major lending charge by a record 250 basis points and is anticipated to overview this at a upcoming Monetary Coverage Committee meeting on Might 23.

Ofori-Atta stated another fascination rate hike would be a “knee jerk reaction” to “imported inflation”, noting that charges experienced continued to improve considering that the March boost.

“We want to figure out an technique that in a way presents us fiscal area,” he stated.

Ghana’s credit history ratings have been downgraded more than issues about the government’s means to move laws to raise revenues.

There has been fierce opposition to a tax on electronic payments accredited in April and introduced as a panacea to fiscal woes, with critics stating it will unfairly impression lessen-cash flow persons and small small business house owners.

(Reporting by Cooper Inveen Crafting by Sofia ChristensenEditing by James Macharia Chege, Alexandra Hudson)