The Executive Director of the Institute of Fiscal Studies (IFS), Professor Newman Kusi, has called for the renegotiation of aspects of Ghana’s Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF).

According to him, the programme must be allowed to run to its fullest, “however there is the need to renegotiate some aspects.”

Prof Kusi made the call Thursday on Morning Starr hosted by Nii Arday Clegg.
He added: “Ken Ofori Atta [Finance Minister-designate] mentioned that they will renegotiate the IMF programme but I do not agree.”

Ghana in 2015 under the National Democratic Congress (NDC) administration entered into a three-year ECF programme with the IMF for a total support of US$918 million.

The objectives of the programme was to restore debt sustainability and macroeconomic stability to foster a return to high growth and job creation through agriculture and infrastructure investment, while protecting social spending; strengthen the BOG’s monetary policy framework, while taking measures to ensure its full effectiveness; and rebuild external buffers.

The New Patriotic Party (NPP) administration is likely to renegotiate the deal. According to Dr. Anthony Osei Akoto, president Nana Akufo-Addo’s minister-designate for Monitoring and Evaluation, the deal struck in 2015 was not approved by parliament.

Former President John Mahama during his last State of the Nation Address impressed on the Akufo-Addo administration to continue the ECF arrangement with the IMF, arguing that continuity in the implementation would ensure debt sustainability and macroeconomic stability of the Ghanaian economy.

“We entered the IMF agreement with the best of intentions and it is important that we continue a diligent implementation of the programme until the end of 2017,” he said.