Here is why IMF boss, Christine Lagarde, believes Ghana can do without IMF

IMF boss,Christine Lagarde
  • The IMF boss believes Ghana has the potential to operate an effective economy without an IMF programme.
  • Christine Lagarde said she is hopeful the resolve by President Akufo-Addo will lead to a much better economy.
  • She was speaking at a forum in Accra as part of her two-day tour to the country as it prepares to exit from the IMF programme by the close of 2018.

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has said that Ghana has the potential to operate and effective economy without an IMF programme.

She was speaking at a forum in Accra, Ghana as part of her two-day tour to the country as it prepares to exit from the IMF programme by the close of 2018.

Mrs Lagarde said: “You know your country better than I do, it seems to me on the face of it, particularly if the resolve that I have heard from the President, from the Vice-President, from the Finance Minister, from the Governor, if there is that resolve to actually stay the course and maintain that fiscal discipline, I think the country has everything it takes to do without an IMF programme”.

The IMF Chief is on an official visit to hold bilateral talks with the managers of the Ghanaian economy.

She told stakeholders present at the forum that she hopes there will be no economic shocks that could impede trade and stop the economy from growing.

“I hope that there would not be these external shocks, whether it is sharp and durable drop in commodity prices or massive increases in tensions that could hamper any trade. I hope that doesn’t happen because if it did, then clearly not just Ghana but quite a few countries would need our help and we stand ready”.

“We need to be ready and available for that. I think in addition to political maturity, I think that fiscal responsibility can be developed and it requires buying and it requires explaining, but I think it’s in the seeds of the tree that you are nurturing,” she added.

In 2015, Ghana entered into an External Credit Facility with the IMF for economic help with funding support of $918 million.

The governing New Patriotic Party (NPP) has, however, announced that it will be moving away from such deals with the IMF. Ghana will exit the External Credit Facility with the IMF by end of 2018.

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