Finance Minister designate eyes IMF support and economic overhaul

Ghana’s newly designated finance minister, Cassiel Ato Forson, has indicated plans to seek additional funding from the International Monetary Fund (IMF) to stabilise the economy amid ongoing challenges.

Forson revealed the intentions during an interview with Reuters on Thursday, January 9, ahead of discussions with an IMF delegation visiting Accra.

“We are committed to working with the IMF, but we also want to ensure we can raise additional financing, working with the IMF and other domestic and international partners,” Forson stated.

He criticised the country’s reliance on Treasury bills as unsustainable and highlighted the need for alternative financing avenues.

President John Dramani Mahama, sworn into office earlier this week, appointed Forson to the key finance portfolio, alongside other strategic appointments such as John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general.

Mahama’s government, inheriting an economy reeling from a historic debt crisis, has pledged swift action to restore stability.

Forson, a 46-year-old chartered accountant with advanced degrees in taxation and finance, outlined plans to cut public spending to combat inflation and revive domestic bond issuance by mid-year.

“There is a lot of wastage in the system, and we will cut them,” he added.

The finance minister also pledged to reform the crucial cocoa sector, tackling funding issues, crop diseases, and production challenges.

Ghana’s economy, which defaulted on most external debt in 2022, is concluding a debt restructuring process. Forson assured that Mahama’s administration would finalise negotiations with non-Eurobond commercial creditors.

While Mahama previously campaigned on renegotiating Ghana’s IMF bailout terms, market analysts believe the current programme will remain intact due to limited fiscal flexibility.

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